Yesterday’s signals were not triggered as none of the key levels were ever reached.
Today’s USD/CHF Signals
Risk 0.75%.
Trades may only be taken between 8am and 5pm London time today.
Short Trades
Short entry following a bearish price action reversal upon the next touch of 0.9725 or 0.9761.
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 it looked quite likely that we would see the price again test 0.9761 and what happens at this level was likely to be key for today. I was wrong about that, the price actually turned bearish and fell, printing a new lower resistance level at 0.9725. So, the picture is a little more bearish, but the price has now reached a formerly consolidative area. Probably little will happen until the ADP forecast during the New York session which could produce a Dollar-driven move. I have no directional bias here today, but I would be happy to take a short trade from either of the two nearby resistance levels if either produces a solid bearish reversal.
There is nothing important due today concerning the CHF. Regarding the USD, there will be a release of ADP Non-Farm Employment Change data at 1:15pm London time, followed by ISM Non-Manufacturing PMI at 3pm, and Crude Oil Inventories at 4pm.