USDCHF Analysis: 0.9946 looks very pivotal
Yesterday’s signals were not triggered, as there was no bearish price action at 0.9914 when it was hit.
Today’s USD/CHF Signals
Risk 0.50%.
Trades may only be taken before 5pm London time today.
Short Trade Idea
Short entry following a bearish price action reversal upon the next touch of 0.9946.
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 0.9914 or 0.9889.
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 situation here now was extremely congested and range-bound, and this pair was probably good for nothing more than quick scalps off any key levels which were hit, although I was not optimistic that 0.9889 would continue to hold as resistance for much longer. I was partially correct as we got a break above 0.9889 and the price continued to rise, creating new higher support levels.
The price is again near to challenging the strong medium-term resistance level at 0.9946 and this level is likely to be today’s major pivotal point. I think if get 2 hourly closes above that level, the price will be set for a rise to at least 1.0000. Conversely a bearish failure could also be a good short trade but probably only until about 0.9914.
Due to the absence of scheduled news events today, unless something dramatic happens in the Gulf or concerning the U.S. / China trade dispute, the resistance at 0.9946 will be likely to hold over the day.
There is nothing of high importance due today concerning either the CHF or USD.