Yesterday’s signals were not triggered, as there was no bullish price action at 0.9965.
Today’s USD/CHF Signals
Risk 0.75%.
Trades may only be taken before 5pm London time today.
Short Trade
- Short entry following a bearish price action reversal upon the next touch of 0.9965.
- Put 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.
- 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
- Long entry following a bullish price action reversal upon the next touch of 0.9892 or 0.9848.
- Put 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.
- Remove 50% of the position as profit when the price reaches 20 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 yesterday that this pair may become interesting to trade at the time of the FOMC if it caused a spike to a key level and a reversal at that point. This scenario did not play out, but this pair is more relevant today as safe-haven currencies such as the Swiss Franc strengthen meaningfully against the Dollar. The SNB quarterly statement very early in the London session will probably be aimed at reversing some of this gain so we could see a lack of direction here. Much will depend upon what the SNB says. If somehow it extends the downwards move, that could be interesting for short trades, but be wary of the support levels – there are more in the area not far below the current price.
Concerning the CHF, the SNB will be releasing its Monetary Policy Assessment at 8:30am London time, followed by the usual press conference half an hour later. There is nothing of high importance due today regarding the USD.