USD/CHF Forex Signal - 25 April 2016

USD/CHF Signal Update

Last Thursday’s signals produced a long entry after the very large bullish outside candle rejecting 0.9649. This trade could still be open and in profit so it would make sense to tighten the stop up so it sits below 0.9750 or thereabouts.

Today’s USD/CHF Signals

Risk 0.75% per trade.

Trades may only be entered between 8am and 5pm London time today.

 

Long Trades

  • Long entry after bullish price action on the H1 time frame following the next touch of 0.9752, 0.9727 or 0.9680.

  • 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 Trade

  • Short entry after bearish price action on the H1 time frame following the next entry into the zone between 0.9800 and 0.9814.

  • 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.

USD/CHF Analysis

This pair has been one of the prime manifestations of last week’s U.S. Dollar strength. The very strong rebound from the support level at 0.9649 was very indicative of a pair that wants to rise. The support levels remain intact and we have a couple of flipped resistances to supports not far below that have been manufactured during this upwards move.

However we are finally reaching an area of key resistance confluent with the round number at 0.9800 and it should be noted that over recent months, whole, half and quarter numbers have tended to act as very effective levels with this pair. Therefore even if the pair does not move much today, and dips down to 0.9752 and 0.9727 could be good buying opportunities, although perhaps with most profit taken at or very close to 0.9800 as a conservative play.

USDCHF

There is nothing due today regarding either the CHF or the USD.

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.