USD/CHF Signal Update

Last Thursday’s signals produced a profitable long trade following the break of the bullish pin candle rejecting the support level identified at 1.0050.

Today’s USD/CHF Signals

Risk 0.75% per trade.

Trades may only be entered between 8am and 5pm London time today.

Long Trades

• Go long after bullish price action on the H1 time frame following the next touch of 0.9949 or 0.9902.

• Put the stop loss 1 pip below the local swing low.

• Move the stop loss to break even once the trade is 20 pips in profit.

• Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.

Short Trades

• Go short after bearish price action on the H1 time frame following the next touch of 0.9993 or 1.0043.

• 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.

• Remove 50% of the position as profit when the trade is 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 last Thursday that although the pair was looking more bullish by rising from the parity area, the bearish swing rhythm was still intact which made me very cautious. I was right to be cautious as we now have a break below parity. The pair looks bearish and the USD is selling off everywhere. This pair is behaving very similarly to the EUR/USD currency pair, which I prefer as a vehicle to trade against the USD.

(Click on image to enlarge)

There is nothing of high importance due today concerning either the CHF or the USD.