USD/CHF Forex Signal - 20 July 2017

Thursday, 20 July 2017 8:39

By: DailyForex.com

Yesterday’s signals were not triggered as none of the key levels were ever reached.

Today’s USD/CHF Signals

Risk 0.50% 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 0.9600.
  • 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 ride.

Long Trade 1

  • Go long after bullish price action on the H1 time frame following the next touch of 0.9500.
  • 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 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

The price has not yet even managed to touch the very strong support level I am expecting at the psychologically important round number of 0.9500. The resistance at the next round number above at 0.9600 also remains. Recent hours have seen a small, mild bullish retracement that tells us little. It is generally a good idea to trade reversals at round numbers with this currency pair generally, and this is the scenario that is worth waiting for here. A bullish reversal at 0.9500 could be an excellent long-term long trade entry, despite the bearish trend in the U.S. Dollar.

USDCHF

There is nothing due today concerning the CHF. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time.

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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