USD/CHF Forex Signal - 20 October 2015

USD/CHF Signal Update

Yesterday’s signals were not triggered and expired.

Today’s USD/CHF Signals

Risk 0.75% per trade.

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

 

Long Trade 1

  • Go long after bullish price action on the H1 time frame following a touch of the bullish trend line currently siting at around 0.9523.

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

  • Adjust 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 run.

 

Long Trade 2

  • Go long after bullish price action on the H1 time frame following a touch of 0.9385.

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

  • Adjust 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 run.

 

Short Trade 1

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.9648.

  • Put the stop loss 1 pip above the local swing high.

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

  • Remove 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.

 

USD/CHF Analysis

I was correct in forecasting that the resistance at 0.9550 would give way yesterday, but there was no sharp upwards move as I had also thought might happen, Instead the price came back down, forming a new pennant and invalidating the horizontal level at 0.9550 which we can now disregard.

Although pennants tend to show continuations, I am wary of trading a break below the supportive trend line, and I still look instead for a rejection of that trend line giving a long trade. It is probably too late to go short as we already rejected the upper line.

A bullish breakout that returns the price to 0.9648 any time soon would probably hit a great resistant confluence and be a good place to seek a short trade.

USDCHF

There are no high-impact releases due today concerning the CHF. Regarding the USD, there will be a release of Building Permits data at 1:30pm London time.

Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.