Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s USD/CHF Signals
Risk 0.75%.
Trades must be entered between 8am and 5pm London time today only.
Short Trade
Short entry following a bearish price action reversal upon the next touch of 0.9745.
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 bearish price action reversal upon the next touch of 0.9679.
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 would want to see the price break below yesterday’s low price for an hour or so today before taking a bearish bias. This worked out very well, as the price continued to fall strongly from the low at 0.9745. Looking at the chart, we can see there is a strong and pronounced bearish trend in this pair, with a very strong Swiss Franc.
Trading this pair tends to be problematic because it does not trend the way other USD currency pairs do, and it is heavily manipulated by the SNB, who are extremely skilled at destroying CHF longs when the going gets too good – this makes shorts especially difficult.
However, there is no doubt that the price looks as if it will reach the nearest key support level at 0.9679. As trends here tend to not last for long, a strongly bullish reaction there could be a long-term price bottom.
There is nothing important due today concerning either the CHF or the USD.