(MENAFN- Daily Forex) Yesterday's signals were not triggered, as the resistance level at 0.9909 was never quite reached.
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 0.9909, 0.9961, or 1.0008.
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Place 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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Long entry following a bullish price action reversal upon the next touch of 0.9848 or 0.9923.
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Place the stop loss 1 pip below the local swing low.
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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 25 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 I thought it was quite likely that the price would continue to fall to at least 0.9850, where it may find some support and eventually turn around to rise somewhat again. Market sentiment does not usually change on a slow Monday, so the Franc I thought was quite likely to remain strong over the short-term.
I was a little wrong: the price did not fall to 0.9850, but the Franc did remain strong enough to keep the price below the nearest resistance level at 0.9909.
The technical picture here is calm and orderly, with relatively little movement. The price looks like respecting key support and resistance levels on low volatility, so trading reversals off key levels on short-term charts is probably going to be the best strategy in trading this pair for the time being. I have no directional bias here now.
There is nothing important due today concerning the CHF. Regarding the USD, there will be a release of PPI data at 1:30pm London time.
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