Yesterday’s signals were not triggered, as there was no bullish price action at 0.9904.
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 0.9904, 0.9920, or 0.9935.
Put 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 Trade
Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.9827.
Put 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 I thought that a bullish breakout from this area was slightly more likely than a bearish one. In the meantime, playing firm reversals off any key level in any direction was likely to be the best approach. This forecast did no harm but wasn’t helpful, as the U.S. Dollar weakened steadily, especially following President Trump’s remarks on the upwards trajectory of interest rates being unhelpful. The price now has fallen to its lowest level seen in August, and is currently settling at a long-term, very slightly bullish trend line, which can be seen in the price chart below. A bearish break below this trend line could see a further sharp fall to the nearest support, which is quite a way lower at 0.9827. I would take a bearish bias today below this trend line.
There is nothing important due today concerning either the CHF or the USD.