USDCHF remains a little weak below 1.0050
Last Thursday’s signals produced a losing long trade from the bullish pin candlestick which rejected the support level at 1.0070.
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 of 1.0053 or 1.0070.
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 Trade
Go long following a bullish price action reversal upon the next touch of 0.9982.
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 rejections of key levels at extremes of the price chart in either direction could provide acceptable trade entries. I preferred long trades but very marginally. This wasn’t a great call as the price continued to move down to make new lows, although the price has recovered somewhat since this week’s trading opened in Asia.
Risk sentiment is recovering today, which suggests the price is going to move up as the CHF is more of a safe haven than the USD, yet the real action in today’s currency market is likely to be in pairs between risky and safe haven currencies, which is elsewhere. Another factor is that markets are closed in London and New York so there is likely to be only little movement here today. The best trade opportunity is quite likely to be scalping short off the resistance level of 1.0053 if it is reached later.
There is nothing of high importance due today concerning either the CHF or the USD. It is a public holiday today in the U.S.A.