USD/CHF Forex Signal - 6 July 2017

Thursday, 6 July 2017 8:24

By: DailyForex.com

Yesterday’s signals produced a profitable short trade following the bearish rejection of the resistant level at 0.9678, which probably should be left to run for the time being.

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 0.9678.
  • 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 Trades

  • Go long after bullish price action on the H1 time frame following the next touch of 0.9617 or 0.9540.
  • 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 level at 0.9678 acted as good resistance, but the short-term trend is still bullish, with the price being supported by a trend line. Another movement up to 0.9678 and failure from a retest, plus a break of the bullish trend line, could be another good short trade entry. Note the longer-term bearish trend line connecting the swing highs, which suggests a continuation of the downwards movement once this short-term bullish trend breaks.USDCHF

There is nothing due today concerning the CHF. Regarding the USD, there will be a release of the ADP Non-Farm Employment Change at 1:15pm London time, followed by Unemployment Claims at 1:30pm, ISM Non-Manufacturing PMI at 3pm, and Crude Oil Inventories at 5pm.

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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