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 until 5pm New York time today.
Short Trades
Short entry following a bearish price action reversal upon the next touch of 1.0170 or 1.0180.
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 Trade
Long entry following a bullish price action reversal upon the next touch of 1.0131.
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 although the U.S. Dollar was being bought it was possible the price may now be running into new lower resistance at 1.0185. I was not certain – in the end, the price rose moderately over the course of the day.
This currency pair made a new long-term high price lately but has gradually sold off from there over recent days, seeing to print a very distributive top. The price chart below shows a bearish trend line can be drawn at the highs, and we have new lower resistance levels forming below 1.0200 also. This suggests that the line of least resistance is downwards, and although the Dollar is quite strong right now, the trade war “risk off” sentiment is likely to strengthen the Swiss Franc.
For these reasons, I think that today is most likely to be a down day, and I would take a bearish bias if there is a healthy rejection of either of the nearby resistance levels after 9am New York time today, at least until the support at 1.0131.
There is nothing important due today concerning either the CHF or the USD.