USD/CHF Forex Signal - 28 June 2018

Yesterday’s signals were not triggered as there was no bearish price action when the price reached 0.9936.

Today’s USD/CHF Signals

Risk 0.75%.

Trades may only be entered before 5pm London time today, over the next 24-hour period.

Short Trade

  • Short entry following a bearish price action reversal upon the next touch of 1.0005.

  • 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.

  • Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to ride.

Long Trade

  • Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.9922.

  • 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.

  • Take off 50% of the position as profit when the price reaches 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 was a little bearish yesterday and I was completely wrong, as the price has risen very strongly in this pair over the past 24 hours. This is partly due to new strength in the U.S. Dollar as money flows into perceived safe havens upon concerns over trade tariffs, but European currencies such as the Swiss Franc are also particularly weak right now. Technically, the price has broken above resistance and is now approaching the parity level at 1.0000, which could be a very significant long-term. At the time of writing, the price has just hit the resistance level slightly below there at 0.9985, and there are initial signs that the level might hold. I think that even if the Dollar remains strong, it might struggle to rise further, as the resistance level is so significant. Nevertheless, I have to take a bearish bias today until there is an obvious and strongly bearish turn.USDCHF

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

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.