USD/CHF Forex Signal

04 January 2017 9:10:02 AM

By: DailyForex.com

USD/CHF Signal Update

Yesterday’s signals were not triggered as unfortunately the bearish rejection of the identified resistance level at 1.0315 only formed at the end of the session.

Today’s USD/CHF Signals

Risk 0.75% per trade.

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

 

Long Trade 1

  • Go long after bullish price action on the H1 time frame following the next touch of 1.0200.

  • 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 1

  • Go short after bearish price action on the H1 time frame following the next entry into the zone between 1.0315 and 1.0327.

  • 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

I wrote yesterday that I expected the upwards movement would falter at about 1.0250 and that the resistance at 1.0315 looks strong. I was wrong about the first part but right about the second part. There is still a long-term bullish trend in this pair but weaker than the bearish trend in the highly positively correlated EUR/USD pair, which suggests this is not the best pair to use to long the USD now. Shorting rejections of the strong resistance above is likely to be a better bet.USDCHF

There is nothing due today regarding the CHF. Concerning the USD, there will be a release of FOMC Meeting Minutes at 7pm London time.

Adam is a Forex trader who has worked within financial markets for over 12 years, including 6 years with Merrill Lynch. He is certified in Fund Management and Investment Management by the U.K. Chartered Institute for Securities & Investment. Learn more from Adam in his free lessons at FX Academy.

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