Last Thursday’s signals were not triggered, as there was no bullish price action at 0.9957.
Today’s USD/CHF Signals
Risk 0.75%.
Trades must be taken between 8am and 5pm London time today.
Short Trades
Go short following a bearish price action reversal upon the next touch of 1.0025 or 1.0058.
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
Go long following a bullish price action reversal upon the next touch of 0.9965 or 0.9892.
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 last Thursday that I saw the technical picture as dominated by a slower, new downwards price channel. I saw the only opportunities here as reversals at 1.0025 and 0.9957 and thought this pair may be worth paying attention to as there was more volatility and cleaner and stronger price swings. I was right about the increasing volatility and looking for reversals, but wrong about the level at 0.9957, with the strong bullish reversal taking place below that number.
The price is now consolidating between 1.0025 and 0.9965 with bulls and bears both looking evenly matched. It is likely both levels and probably also the bearish trend line shown in the price chart below will hold over the course of today, so trading any strong reversals there is a possible strategy, but it looks as if any opportunities in the market today are likely to set up in other currency pairs such as USD/JPY or GBP/USD.
There is nothing of high importance due today concerning either the CHF or the USD.