Last Thursday’s signals were not triggered, as none of the key levels were reached that day.
Today’s USD/CHF Signals
Risk 0.75%.
Trades may only be taken between 8 am and 5 pm London time.
Short Trades
- Go short following a bearish price action reversal upon the next touch of 0.9961 or 1.0008.
- 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 0.9909 or 0.9848.
- 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 this pair was not in the market’s focus which meant there was likely to be more action in other currency pairs today, but this calmness may give another opportunity on shorter time frame charts to trade bounces off key levels in either direction, as it did the day before. This was a good call as the price did little during Thursday’s London session. A few days later, there is no substantial change to the technical picture, except the breach of resistance at 0.9961 although the level looks to be in play again now as resistance. I have no directional bias and I see rejections of any key level marked as likely to produce conservatively profitable trade entries. Again, the real action will probably be elsewhere, so I would not look to be trading this pair.
There is nothing important due today concerning either the CHF or the USD.