USD/CHF Forex Signal - 29 October 2018

Last Thursday’s signals were not triggered, as there was no bearish price action at either 0.9982 or 1.0010.

Today’s USD/CHF Signals

Risk 0.75%.

Trades must be entered between 8am and 5pm London time today only.

Short Trades

  • Short entry following a bearish price action reversal upon the next touch of 0.9988.

  • Place 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 Trades

  • Long entry following a bullish price action reversal upon the next touch of 0.9918 or 0.9898.

  • Place 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.

  • Take off 50% of the position as profit when the price reaches 25 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 it seemed completely impossible to make any technical case why the price should move in a particular direction, so I would avoid trading this pair for now. This was a reasonably good call, as the price has not moved a great deal in any particular direction. However, the technical picture is starting to look more clearly defined, so there may begin to be some opportunities here in this currency pair. A strong break below the supportive trend line, perhaps after another rejection of the resistance level at 0.9988, could see a stronger fall down to at least 0.9918, so I would take a bearish bias if that happens. This looks to be a more probable outcomes than a rise, but a bullish break and hold above 0.9988 could be taken as a bullish sign. However, the beginning of a move down from a psychologically key area around parity (1.0000) is likely to have a better probability of generating opportunities on the short side.USDCHF

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

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.