USDCHF Analysis: Bearish below 0.9890 to 0.9850
Yesterday’s signals were not triggered, as there was no suitable price action at any of the key levels which were reached.
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 0.9890, 0.9911 or 0.9945.
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 Idea
Long entry following a bullish price action reversal upon the next touch of 0.9820.
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 action here was likely to closely mirror the EUR/USD currency pair, where the Euro was weakly bullish above 1.1121. If the EUR/USD had gotten established above that level, I would expect the price here to continue to fall also.
This was a good call, as it reflects what happened. The Euro is the strongest major currency now and the USD has weakened, so we can expect the price here to be more likely to fall than to rise over today.
For this reason, I would be prepared to take a bearish bias if we get a bearish reversal from any of the resistance levels which I have identified above. However, there is an inflective point below the current price at 0.9840, so the price may struggle to get any lower than 0.9850.
There is nothing of high importance due today concerning either the CHF or the USD.