USD/CHF Forex Signal - 5 July 2018

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

Today’s USD/CHF Signals

Risk 0.75%.

Trades may only be entered between 8am and 5pm London time today, during the next 24-hour period.

Short Trade

  • Short entry following a bearish price action reversal upon the next touch of 0.9985.

  • 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 0.9887.

  • 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 took a bearish bias yesterday, because it looked like the short-term momentum was downwards, and because there seems to be greater long-term potential in that direction. The bearish trend lines shown in the price chart below were an additional factor. However, the price went up a little and is now roughly back where it was. Nevertheless, it still looks bearish and seems to be slowly moving down, even though one trend line was broken, as the longer-term one has held. I maintain my bearish bias today, at least until the ADP data release.

The price seems to be heading down towards the next support level at 0.9887 which looks like it could be very strong, so it will probably produce a bullish bounce if it reached.

USDCHF 

There is nothing important 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 the ISM Non-Manufacturing PMI at 3pm. There will be a release of Crude Oil Inventories data at 4pm, and finally the FOMC Meeting Minutes at 7pm.

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.