Last Thursday’s signals were not triggered as none of the key levels were reached during that day’s London session.
Today’s USD/CHF Signals
Risk 0.75%.
Trades must be entered between 8am and 5pm London time today only.
Short Trades
Go short following a bearish price action reversal upon the next touch 1.0013, 1.0035 or 1.0046.
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 Trades
Go long following a bullish price action reversal upon the next touch of 0.9955, 0.9918 or 0.9898.
Put the stop loss 1 pip below the local swing low.
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 25 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 last Thursday that we were likely to see a continuation of the ranging condition, especially as market liquidity would be very thin after the London session because the U.S. was on holiday. This was a good call and the levels held. The picture is now more bullish, with “stairstep” resistance turned to support at 0.9955 and some room to rise higher to the parity level. I would be bullish if the price trades above 0.9985 after the London open but not optimistic that the price will rise a great deal higher.
There is nothing important due today concerning either the CHF or the USD. It is a public holiday in the U.S.A. today.