USD/CHF Forex Signal - 31 August 2016

USD/CHF Signal Update

Yesterday’s signals were not triggered as none of the key levels were reached.

Today’s USD/CHF Signals

Risk 0.75% per trade.

Trades must be taken between 8am and 5pm London time today only.

 

Long Trade 1

  • Go long after bullish price action on the H1 time frame following the next touch of 0.9788.

  • Place 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.

  • Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.

 

Short Trades

  • Go short after bearish price action on the H1 time frame following the next touch of 0.9845 or 0.9894.

  • Place 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.

  • Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.

USD/CHF Analysis

With yesterday’s continuing healthy rise in the U.S. Dollar, this pair was one of the major gainers of the day, but note how the price advance stopped just underneath the nearest key resistance level I have been highlighting at 0.9845. We have had a pull back and another small upwards thrust but the price has still not been able to even touch that level. This slowdown is suggestive that we may get a tradeable bearish reversal off that level if the USD runs out of steam.

Below I see new potential support at 0.9788.

USDCHF

There is nothing due today concerning the CHF. Regarding the USD, there will be a release of the ADP Non-Farm Employment Change data at 1:15pm London time, followed by Crude Oil Inventories at 3pm.

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.