USDCHF Analysis: Weakly bullish above 0.9940
Last Thursday’s signals were not triggered as there was no bullish price action when the resistance level identified at 0.9915 was reached.
Today’s USD/CHF Signals
Risk 0.50%.
Trades may only be taken before 5pm London time today.
Short Trade Ideas
Go short following a bearish price action reversal upon the next touch of 0.9969 or 1.0033.
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
Go long following a bullish price action reversal upon the next touch of 0.9940, 0.9911 or 0.9876.
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 last Thursday that the best strategy here would probably be to fade spikes to any extreme levels shortly after the ECB release. However, this did not happen as the ECB release had relatively little impact.
We have seen a weakly bullish trend over the past few days and are currently seeing a bearish retracement which looks likely to hit the new higher support at 0.9940. If there is a bounce there, it may be good for a long scalp at least or maybe even something stronger. However, overall it is likely to be a quiet Forex market today.
There is nothing of high importance due today concerning either the CHF or the USD.