USDCHF Analysis: Strong support below0.9842
Yesterday’s signals were not triggered as there was no bullish price action at 0.9889 or 0.9853.
Today’s USD/CHF Signals
Risk 0.50%.
Trades may only be entered before 5pm London time today.
Short Trade Idea
- Short entry following a bearish price action reversal upon the next touch of 0.9890 or 0.9942.
- 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 run.
Long Trade Ideas
- Long entry following a bullish price action reversal upon the next touch of 0.9842, 0.9820, or 0.9800.
- 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 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 price was consolidating so generally, trading any rejection of the extreme levels at the top or bottom of the price chart would probably be the best strategy to take. This was enough to stay out of trouble at least.
The picture is more bearish as the price has broken to lower levels which have not been seen in a while. However, the three support levels above 0.9800 remain intact at the bottom of the price chart shown below, and all look very strong due to the fact that the price action which produced them was very strongly defined. This means that I see the best potential opportunity as a long trade entry off any of these levels which should following a healthy bullish bounce push the price higher back into its range of consolidation and comfort. I’d take a bullish bias on this pair today following a solid bullish bounce at support.
There is nothing of high importance due today concerning the CHF. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time.