USD/CHF Forex Signal

Yesterday’s signals produced an excellent, profitable short trade following the bearish pin candlestick which rejected the resistance level at 1.0110. It would probably be wise to have taken at least partial profits by now.

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 1.0110 or 1.0150.

  • Put 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.

  • Remove 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.

Long Trades

  • Long entry following a bullish price action reversal upon the next touch of 1.0048, 1.0035, or 1.0014.

  • Put 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.

  • Remove 50% of the position as profit when the price reaches 25 pips in profit and leave the remainder of the position to run.

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 yesterday that the resistance at 1.0110 was going to be pivotal today, and I would take a bullish bias to 1.0150 at least if the price were to break above 1.0110 and stay there for a couple of hours. This was a good call insofar as it correctly identified the pivotal price for the day – the price was unable to remain above it and moved down all day from the early part of the London session. It is difficult to say what will happen next, as there are plenty of support levels above parity, so it would not be a surprise if the price just consolidates now. I have no directional bias today.USDCHF

There is nothing important due today concerning the CHF. Regarding the USD, there will be a release of CPI data at 1:30pm London time, and the Chair of the Federal Reserve will be giving a minor speech at 11pm.

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.