Yesterday’s signals

Today’s USD/CHF Signals

Risk 0.75% per trade.

Trades must be taken before 5pm London time today only.

Protect all open trades by 5:30pm.

Long Trades

• Go long after bullish price action on the H1 time frame following the next touch of 1.0059 or 1.0003.

• 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 1.0111 or 1.0139.

• 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

There is no long-term trend, although over the long-term this pair is closer to a bullish rather than bearish outlook.

The price remains stuck between 1.0059 and 1.0111 with key levels being quite effective in providing turning points. Over the medium-term, the bears have the upper hand.

The best way to trade this pair before the FOMC release due later would probably be to look for a reversal off a key level.

(Click on image to enlarge)

Regarding the CHF, there will be releases of the Swiss National Bank’s LIBOR Rate and Monetary Policy Assessment at 8:30am London time. Concerning the USD, there will be releases of Building Permits, Philly Fed Manufacturing Index, and Unemployment Claims data at 12:30pm.