USD/CHF Forex Signal - 13 December 2018

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Yesterday’s signals produced a profitable short trade off the bearish doji candlestick which rejected the resistance level at 0.9961. This trade has produced the minimum 20 pips of profit already.

Today’s USD/CHF Signals

Risk 0.75%.

Trades must be entered before 5pm London time.

Short Trades

  • Short entry following a bearish price action reversal upon the next touch of 0.9961 or 1.0008.

  • 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 0.9909 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 I thought the price looked like respecting key support and resistance levels on low volatility, so trading reversals off key levels on short-term charts was probably going to be the best strategy in trading this pair for the time being. This was a good call as the price rejected the only level it reached quite cleanly, at 0.9961, which provided an opportunity for a profitable short trade entry. This pair is not in the market’s focus which means there is likely to be more action in other currency pair today, but this calmness may give another opportunity on shorter time frame charts to trade bounces off key levels in either direction, as it did yesterday. However, beware, as the SNB is releasing its quarterly statement which could cause short-term volatility in the Swiss Franc.

USDCHF

There is nothing important due today concerning the USD. Regarding the CHF, the SNB will present its quarterly Monetary Policy Assessment at 8:30am London time followed 30 minutes later by the usual press conference.

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.