Yesterday’s signals were not triggered, as none of the key levels were reached during the London session.
Today’s USD/CHF Signals
Risk 0.75%.
Trades may only be entered before 5pm London time today.
Short Trades
Go short following a bearish price action reversal upon the next touch of 0.9953 or 1.0010.
Put the stop loss 1 pip above the local swing high.
Move the stop loss to break even once the trade is 20 pips in profit.
Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to ride.
Long Trades
Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.9907, 0.9885, or 0.9827.
Put the stop loss 1 pip above the local swing high.
Move the stop loss to break even once the trade is 20 pips in profit.
Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to ride.
The best method to identify a classic “price action reversal” is for an hourly candle to close, such as a pin bar, a doji, an outside or even just an engulfing candle with a higher close. You can exploit these levels or zones by watching the price action that occurs at the given levels.
USD/CHF Analysis
I wrote yesterday that I had no directional bias and would look to fade rejections of key levels or trend lines, but I would be bullish above 0.9953. The price stayed below that level and did not reach any key level during the London session, but during the Asian session there was a convincing bullish reversal at the support level of 0.9907. the price chart below shows the same technical situation” a wide bearish channel and key levels all holding and being respected. It seems wide to take the same approach as yesterday: no directional bias, just look for reversals off key levels and trend lines. Keep in mind that the monthly policy release from the European Central Bank due later can cause volatility in the CHF as well as the EUR.
There is nothing important due today concerning the CHF. Regarding the USD, there will be a release of Core Durable Goods Orders at 1:30pm London time.