(MENAFN- Daily Forex) Yesterday's signals produced a profitable long trade from the bullish reversal at 0.9904.
Today's USD/CHF Signals
Risk 0.75%.
Trades may only be taken before 5pm London time today.
Short Trades
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Go short following a bearish price action reversal upon the next touch of 0.9978 or 1.0010.
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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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Go long 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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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 the picture was looking more bearish, with suggestions that 0.9922 will break down, but I still maintained no preferred direction and saw reversals at any key level as an opportunity. As it happened, there was a nicely profitable long trade from the bullish bounce at the support level I identified at 0.9905. The price has now technically broken out of the bearish channel, as shown in the price chart below, but it really does not look convincing. As both currencies are safe-havens and therefore strong in the current market, I do not expect any large movements in this pair, so playing strong reversals at key levels in any direction should remain the best tactic.
There is nothing important due today concerning the CHF. Regarding the USD, there will be a release of Retail Sales data at 1:30pm London time and Crude Oil Inventories at 3:30pm.
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