USD/CHF Forex Signal - 20 April 2017

Yesterday’s signals produced a profitable long trade following the hourly doji candle rejecting the support level identified at 0.9958, although it gave little more than the minimum profit of 20 pips.

 

Today’s USD/CHF Signals

Risk 0.50% per trade.

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

 

Short Trade 1

* Short entry after bearish price action on the H1 time frame following the next touch of 1.0000.

* 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.

 

Long Trade 1

* Long entry after bullish price action on the H1 time frame following the next touch of 0.9941.

* 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.

 

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

It was not surprising that the price found support at 0.9958 yesterday. This level may continue to hold, but it is beginning to look quite “used up”, so I look instead to the next level below for support. This is at 0.9941, and is not far away.

There is no long-term trend, and there are likely to be better opportunities for trading anything that might happen here on the EUR/USD currency pair, which tends to have a very high positive correlation with this pair’s movements.

USDCHF

There is nothing due today regarding the CHF. Concerning the USD, there will be releases of Unemployment Claims and Philly Fed Manufacturing Index data at 1:30pm London time, followed later by the Treasury Secretary speaking at 6:15pm.

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.