USDCHF Analysis: Ranging between 0.98715 and 0.9909
Yesterday’s signals were not triggered, as the price did not quite reach 0.9909 and as there was no bullish price action at 0.9873.
Today’s USD/CHF Signals
Risk 0.75%.
Trades may only be entered before 5pm London time today.
Short Trade Ideas
Go short following a bearish price action reversal upon the next touch of 0.9866 or 0.9909.
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 Idea
Go long following a bullish price action reversal upon the next touch of 0.9815.
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 yesterday that the price was firmly within both its long and short-term ranges. As such, I had no directional bias. This was a good call, as the price remained within its long-term range after falling from just a few pips below the resistance at 0.9909.
The price is still ranging so I take the same approach as yesterday, but if the price can get established below 0.9850 over the next few hours, that would be a mildly bearish sign. However, the old trend line shown within the price chart below and the horizontal level at 0.9815 are quite likely to keep providing support, limiting any possible further downside.
There is nothing of high importance due today regarding either the CHF or the USD.