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 before 5pm London time today.
Short Trade
Go short following a bearish price action reversal upon the next touch of 1.0110.
Place 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 upon the next touch of 1.0033, 1.0009 or 0.9988.
Place the stop loss 1 pip below the local swing low.
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 25 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 all the technicals still suggested continued upwards movement and as the U.S. Dollar was generally strong, and as there were no key resistance levels preventing a continuation of the upwards movement until 1.0110, I would be bullish above 1.0060. The price did continue to advance beyond 1,0060 giving another 35 pips before falling back over the later half of the New York session.
I still think the picture is weakly bullish. The price is not far from a new higher support level at 1.0033 which might produce a long trade entry if there is a bullish bounce there. Yet there will probably be better opportunities today in other currency pairs such as GBP/USD and EUR/USD.
There is nothing important due today concerning the CHF. Regarding the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time.