Last Thursday’s signals may have given a nicely profitable long trade from the bullish bounce just a fraction below the support level identified at 0.9905.
Today’s USD/CHF Signals
Risk 0.75%.
Trades must be entered between 8am and 5pm London time today only.
Short Trades
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Short entry following a bearish price action reversal upon the next touch of 0.9978 or 1.0010.
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Place the stop loss 1 pip above the local swing high.
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Adjust the stop loss to break even once the trade is 20 pips in profit.
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Remove 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.
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 0.9922 or 0.9905.
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Place the stop loss 1 pip above the local swing high.
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Adjust the stop loss to break even once the trade is 20 pips in profit.
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Remove 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 took no directional bias last Thursday, as I thought reversals at either 0.9922 or 0.9978 would look equally interesting as potentially good trades. The important reversal of the day took place a little way below 0.9922, at the next support level of 0.9905.
There has been a “risk-off” move into safe havens over the past couple of days due to the Turkish Lira crisis. Both the currencies in this pair are safe havens, so we have not seen much movement. We see a real divergence now between the Euro and the Swiss Franc. This means that the price is still likely to continue to make reversals at key levels which can be traded, so I maintain the same approach on this currency pair today.
A break above 0.9978 or even 1.0000 would be an unexpected and bullish sign.
There is nothing important due today concerning either the CHF or the USD.
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