USD/CHF Forex Signal

Last Thursday’s signals were not triggered, as there was no bullish price action at either 0.9933 or 0.9918.

Today’s USD/CHF Signals

Risk 0.75%.

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

Short Trades

  • Go short following a bearish price action reversal upon the next touch of 0.9909, 0.9961, or 1.0008.

  • 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

  • Go long following a bullish price action reversal upon the next touch of 0.9848 or 0.9923.

  • 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 last Thursday that as the U.S. Dollar was stronger, so it may be that a bullish break above 1.0008 was a little more possible. This pair was not in the market’s focus and is generally range-bounce, so all strong reversals off key levels in any direction were probably good bets. I had no directional bias.

In fact, the price began to make a relatively strong bearish movement that day, which has continued, due to the flow into safe havens which obviously includes the Swiss Franc. Technically this bearish movement is also probably helped by the fat that the price was struggling to rise much above the parity level, so it was easier for it to fall than rise.

I think it is quite likely that the price will continue to fall to at least 0.9850, where it may find some support and eventually turn around to rise somewhat again. Market sentiment does not usually change on a slow Monday, so the Franc is quite likely to remain strong over the short-term.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.