USD/CHF Forex Signal - 29 May 2017

29 May 2017 7:13:29 AM

By: DailyForex.com

Last Thursday’s signals were not triggered as none of the key levels were ever reached, although the price did again come close to the support level at 0.9694.

Today’s USD/CHF Signals

Risk 0.50% per trade.

Trades must be taken before 5pm Frankfurt 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 last Thursday that a double bottom at the support could be a great long trade entry. The price subsequently reached a level just a couple of pips above the support level I had identified at 0.9694 before rising again, so this is what happened and it could have provided a nice and profitable long trade, in addition to the initial long trade from that area which would also be in floating profit.

It looks now as if the price is most likely to consolidate, so this could be an appropriate point to take at least partial profits.

This pair is in a long-term bearish trend, but trend following is not usually the best way to trade this currency pair as it likes to range between key levels.USDCHF

There is nothing due today concerning either the CHF or the USD.

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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