USDCHF Analysis: Slightly more bullish as 0.9700 holds
Yesterday’s signals were not triggered, as none of the key levels were reached yesterday.
Today’s USD/CHF Signals
Risk 0.50%.
Trades must be taken between 8am and 5pm London time today only.
Short Trade Ideas
Short entry following a bearish price action reversal upon the next touch of 0.9788 or 0.9840.
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 ride.
Long Trade Ideas
Long entry following a bullish price action reversal upon the next touch of 0.9702, 0.9664, or 0.9637.
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 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 would probably stabilize and then be driven later by what happened to the U.S. stock market when it opened later. If stocks continued their recent strong sell-off, the price should have fallen further, but there were signs in the off-hours market that stocks may be finding at least a short-term bottom.
This was a good call as the U.S. stock market did stabilize, and this prevented the price in this currency pair from falling to hit the support at 0.9700.
The technical situation now sees the price caught between 0.9701 and 0.9788. Market sentiment is pretty strongly risk-off, but we are not seeing the Franc benefit from that, so I would not be interested in trading this currency pair today – you can probably better trade the move into safety through precious metals or possibly the Japanese Yen more effectively.
I take no directional bias on this currency pair today.
There is nothing of high importance due today concerning either the CHF or the USD.