Yesterday’s signals were not triggered as the bearish price action at 0.9955 was too slow.
Today’s USD/CHF Signals
Risk 0.75%.
Trades must be entered before 5pm London time today.
Short Trades
- Short entry following a bearish price action reversal upon the next touch of 0.9926 or 0.9955.
- 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, 0.9848, 0.9816 or 0.9790.
- 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 the picture still looked bearish, but the price had reached an area with multiple support levels, so the move down may well slow or even halt. Therefore, I was ready to only take a bearish bias if we got a strong bearish rejection of 0.9955 after a bullish retracement which tests that level.
This was a good call as the resistance at the level of 0.9955 was the turning point and capped the high of the day almost to the pip. Unfortunately, the rejection was quite slow and so looked unreliable even though it was a solid turn.
There is no significant change to the technical picture and the picture is still bearish. I stick to my analysis from yesterday, that despite the downwards momentum, this area of support levels which has now almost been reached will probably be challenging for the bears and halt the decline, at least temporarily.
There is nothing important due today concerning the CHF. Regarding the USD, there will be a release of ISM Non-Manufacturing PMI data at 3pm London time.