Yesterday’s signals may have given a great short trade from the bearish reversal at 0.9978, although the peak was a little above that level.
Today’s USD/CHF Signals
Risk 0.75%.
Trades must be entered between 8am and 5pm London time today only.
Short Trades
Short entry following a bearish price action reversal upon the next touch of 0.9982 or 1.0010.
Place the stop loss 1 pip above the local swing high.
Adjust the stop loss to break even once the trade is 20 pips in profit.
Remove 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.
Long Trades
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.9904 or 0.9885.
Place the stop loss 1 pip above the local swing high.
Adjust the stop loss to break even once the trade is 20 pips in profit.
Remove 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.
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 as both currencies are safe-havens and therefore strong in the current market, I did not expect any large movements in this pair, so playing strong reversals at key levels in any direction should remain the best tactic. This was a good call, with a strong bearish reversal in the 0.9978 area could have produced a profitable short trade entry. We see all the key levels continuing to hold and the price remaining constrained between areas of support and resistance within an increasingly long-term price range, so there is no change to this technical picture.
There is a very slightly bullish bias suggesting the eventual breakout will be above 0.9982 rather than below 0.9885.
There is nothing important due today concerning either the CHF or the USD.