Yesterday’s signals produced two profitable long trade entries from the support level at 0.9907.
Today’s USD/CHF Signals
Risk 0.75%.
Trades may only be entered before 5pm London time today.
Short Trade
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Short entry following a bearish price action reversal upon the next touch of 0.9985.
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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 0.9907 or 0.9885.
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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.
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 I was more bullish as there was nothing obvious to stop the price rising, provided that the support level at 0.9907 held. This was a good call as the level did hold and gave two opportunities to take profitable long trades. The picture definitely looks more bullish now, over the short term I think the question is whether the price will be able to use 0.9950 as new higher support and push up, or whether it will break down and go back to 0.9907, so 0.9950 is the price to watch at the time of writing. I have no bias as the price is likely to now be very heavily influenced by the U.S. inflation data due later, as the Dollar is moving the market.
There is nothing due today concerning the CHF. Regarding the USD, there will be a release of CPI data at 1:30pm London time.
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