USD/CHF Forex Signal - 23 March 2017

Yesterday’s signals were not triggered as there was no bullish price action at 0.9909.

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 0.9909 or 0.9856.

  • 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

  • Short entry after bearish price action on the H1 time frame following the next touch of 1.0010 or 0.9950.

  • 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.

 

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

The price still looks bearish, but if the price can break up above the bearish trend line shown in the chart below and the weak resistance at 0.9950, I would expect a period of consolidation. The level above it at 1.0010 likely to be much stronger.

The area close to 0.9850 is a very key area of long-term support, so it is not surprising that we get strong bullish bounces as and when the price gets closer to this area.

The highly-correlated EUR/USD is probably giving better trading opportunities than this currency pair.USDCHF

There is nothing due today regarding the CHF. Concerning the USD, there will be a release of Unemployment Claims at 2:30pm London time, followed 15 minutes later by a speech from the Chair of the U.S. Federal Reserve.

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.