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 must be entered before 5pm London time today only.
Short Trade
- Short entry following a bearish price action reversal upon the next touch of 1.0058.
- Place 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.
- 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 1.0028 or 0.9986.
- Place 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.
- 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.
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 still looked weakly bullish, but I had little confidence in that bias, and would still be looking for a bearish reversal at 1.0110 as the major possible opportunity here. I was almost correct, as the price could not rise above 1.0100 and ended up falling from there, printing new lower resistance at 1.0058 on the way down, while the support level at 1.0028 has held so far after a single touch.
The bulls and bears seem evenly balanced, so the key levels are likely to hold. If the price can trade below 1.0028 for a couple of hours, that would probably be a bearish sign, but overall, I think there will be little movement in this currency pair today. Any opportunities are likely to arrive in other currency pairs.
There is nothing of high importance due today regarding the CHF. Concerning the USD, it is a public holiday in the U.S.A.