(MENAFN- Daily Forex) USDCHF Analysis: Bulls seeking to break above 0.9957
Yesterday's signalsproduced a losing short trade from the bearish rejection of the resistance level at 0.9955.
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 0.9957 or 1.0011.
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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 0.9928, 0.9906, or 0.9887.
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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.
Great trade opportunities are waiting. Don't miss it!
USD/CHF Analysis
I wrote yesterday that the consolidation has continued. There was no change to the technical picture I thought that fading a reversal at a key level would probably be a wise approach, in either direction.
I was wrong, the price has in fact taken on a more bullish activity and is now threatening to breakout above the adjusted key resistance level at 0.9957. A sustained break above this level would be a bullish sign.
The problem with trading the Swiss Franc early today is that the SNB are giving their quarterly policy statement and rate and this can cause very unpredictable movement. However. if the SNB weaken the Franc, in line with the short-term bullish trend, a long trade could be a profitable entry.
I take no directional bias today and would look for opportunities in this pair only a couple of hours after the SNB release passes, ideally for long trades above 0.9957.
There is nothing of high importance due today concerning the USD. Regarding the CHF, the SNB will release their Monetary Policy Assessment at 8:30am London time, followed by the usual press conference half an hour later.
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