Yesterday’s signals were not triggered as there was no bullish price action at 0.9958.
Today’s USD/CHF Signals
Risk 0.75%.
Trades may only be taken before 5pm London time today.
Short Trades
Short entry following a bearish price action reversal upon the next touch of 0.9958 or 1.0013.
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
Long entry following a bullish price action reversal upon the next touch of 0.9918 or 0.9898 or 0.9848.
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 leaving aside the unreliable (in this pair) long-term bullish trend, the fall from an area around parity at 1.0000 had some potential to produce a more substantial bearish movement in the price. I took a bearish bias between 0.9990 and 0.9958. This was a great call, and the price actually fell even further, helped by the fall in stock markets producing “risk off” flow into safe-haven assets such as the Swiss Franc and Japanese Yen.
The bearish momentum seems to be slowing, so although short trades still look more attractive, a bullish reversal at any of the nearby support levels could also be an attractive trade. I have no directional bias now on this pair.
There is nothing important due today concerning either the CHF or the USD.