USD/CHF Forex Signal - 7 February 2017

USD/CHF Signal Update

Yesterday’s signals were not triggered as the price did not start to turn at the 0.9910 area until after the London session.

Today’s USD/CHF Signals

Risk 0.75% per trade.

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

 

Long Trades

  • Long entry after bullish price action on the H1 time frame following the next touch of 0.9910 or 0.9855.

  • 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 Trade 1

  • Go short after bearish price action on the H1 time frame following the next touch of 1.0043.

  • 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.

 

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.

USD/CHF Analysis

I wrote yesterday that there were some initial signs that the downwards trend may be coming to an end. The developments are supporting this direction, with the area just above 0.9900 continuing to act as good support, and now forming a bullish double bottom. It is still too early to say we have a bullish trend again, but just like its sister pair EUR/USD, significant things are starting to happen here. The resistance at 1.0043 is probably going to be very crucial in determining the medium-term future price direction.USDCHF

There is nothing due today concerning 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.