USDCHF Forex Signal

Yesterday’s signals were not triggered, as although the support level at 0.9922 held to the pip, this did not take place until after London closed.

Today’s USD/CHF Signals

Risk 0.75%.

Trades may only be entered before 5pm London time today.

Short Trades

• Go short following a bearish price action reversal upon the next touch of 0.9978 or 1.0010.

• 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.

• Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to ride.

Long Trades

• Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.9922 or 0.9905.

• 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.

• Take off 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 took no directional bias yesterday, but I noted that a bullish bounce at 0.9922 still looked attractive, and this level has held cleanly and precisely as a low. The technical picture now shows the price caught in a balance of indecision between a bullish double bottom at 0.9920, and a medium-term or even long-term heavy bearish trend line and resistance which is now below the parity level, close to 0.9978. I again take no directional bias, I think reversals at either 0.9922 or 0.9978 would look equally interesting as potentially good trades.

There is nothing important due today concerning the CHF. Regarding the USD, there will be a release of PPI data at 1:30pm London time.