USD/CHF Forex Signal

Yesterday’s signals were not triggered as there was no bullish price action at 0.9958.

Today’s USD/CHF Signals

Risk 0.75%.

Trades may only be taken before 5pm London time today.

Short Trades

  • Short entry following a bearish price action reversal upon the next touch of 0.9958 or 1.0013.

  • 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 or 0.9848.

  • 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 yesterday that leaving aside the unreliable (in this pair) long-term bullish trend, the fall from an area around parity at 1.0000 had some potential to produce a more substantial bearish movement in the price. I took a bearish bias between 0.9990 and 0.9958. This was a great call, and the price actually fell even further, helped by the fall in stock markets producing “risk off” flow into safe-haven assets such as the Swiss Franc and Japanese Yen.

The bearish momentum seems to be slowing, so although short trades still look more attractive, a bullish reversal at any of the nearby support levels could also be an attractive trade. I have no directional bias now on this pair.USDCHF

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

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.