USD/CHF Forex Signal - 24 May 2017

24 May 2017 7:45:47 AM

By: DailyForex.com

Yesterday’s signals were not triggered, but the open trade from the bullish rejection at 0.9694 has generated more floating profit and is progressing well. It would make sense to take partial profit here.

Today’s USD/CHF Signals

Risk 0.75% per trade.

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

Short Trade 1

  • Go short after bearish price action on the H1 time frame following the next touch of 0.9812.
  • 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.

Long Trade 1

  • Go long after bullish price action on the H1 time frame following the next touch of 0.9694.
  • 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.

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 the strong buy reaction at the support level of 0.9694 yesterday could be the beginning of a deep pullback and a very good trade. The momentum has continued to make this a more profitable trade, with yesterday’s recovery later in the U.S. Dollar which seems to be persisting into today’s trading. However, the price is nor reaching an area of previous price consolidation, so it may pause and range here for a while. This pair likes to range over the long-term, so strong movements such as this one from extreme levels can turn into very profitable trades. The short-term outlook is likely to be heavily influenced by the contents of the FOMC Meeting Minutes which will be released later, after London closes.

USDCHF

There is nothing due concerning the CHF. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time, followed by the FOMC Meeting Minutes at 7pm.

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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