Yesterday’s signals were not triggered, as there was no bullish price action at 1.0097.
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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Go short following a bearish price action reversal upon the next touch of 1.0099 or 1.0150.
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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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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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Go long following a bullish price action reversal upon the next touch of 1.0058 or 1.0025.
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Place the stop loss 1 pip below the local swing low.
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Adjust 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 if the price broke above 1.0125 on strong volatility, it was likely to reach 1.0150, and a break above that level would be a very bullish sign. This was a good call by implication, as the failure to even test 1.0125 led to a fall in the price and the printing of new lower resistance confluent with the round number at 1.0100.
The price is consolidating comfortable within a range and I have no directional bias. In the unlikely event that the price breaks above 1.0125 later today, I would take a bullish bias at that point. Otherwise, trading any firm rejection of a key level in the direction of the rejection is likely to be the best trading strategy to take with this pair today.
There is nothing of high importance due today concerning the CHF. Regarding the USD, there will be releases of Core Durable Goods Orders and PPI data at 12:30pm London time.
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