Today’s USD/CHF Signals
Risk 0.75%.
Trades may only be entered between 8am and 5pm London time today during the next 24-hour period.
Short Trade
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Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.0111.
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Put the stop loss 1 pip above the local swing high.
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Move the stop loss to break even once the trade is 20 pips in profit.
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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
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Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.9939.
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Put the stop loss 1 pip above the local swing high.
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Move the stop loss to break even once the trade is 20 pips in profit.
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Take off 50% of the position as profit when the price reaches 25 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.
This currency pair has been in a strong and clear long-term bullish trend, moving up ever single week during the past two months. This is partly because the USD is strongly bullish both fundamentally and technically, while the Swiss Franc has the largest negative interest rate of all the major global currencies, at -0.75% annually on deposits.
Technically, it seems that this bullish trend might be running out of steam, as the price has been mostly consolidating over the past two weeks, ever since it reached the psychologically important parity area of 1.000. However, a long trade after a fast drop of the nearest support level would still be likely to give some long pips. Beyond that, I have no directional bias if the price remains within this consolidative range.
There is nothing due today concerning either the CHF or the USD.
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