USD/CHF Forex Signal

Yesterday’s signals produced a profitable long trade following the bullish pin candlestick on the hourly chart which rejected the support level identified at 0.9909.

Today’s USD/CHF Signals

Risk 0.75%.

Trades must be entered before 5pm London time only.

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 0.9904 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 had no directional bias and I saw rejections of any key level marked as likely to produce conservatively profitable trade entries. Again, the real action would probably be elsewhere, so I would not look to be trading this pair.

This was a good call as little happened, but the only level which was reached did in fact give a conservatively profitable rejection trade. I have no adjusted that support level down a few pips from 0.9909 to 0.9904.

The picture now is a little more bearish, although all the levels have held the price looks more likely to sell off than rise today, and if the 0.9900 area is reached now it is likely to be at least a little less supportive. The FOMC release due later may push the price anywhere. For these reasons, I would avoid trading this currency pair today, and I have no bias beyond thinking that a quick drop below 0.9900 in the early part of the London session could see the price reach the next support level quite quickly.USDCHF

There is nothing important due today concerning the CHF. Regarding the USD, there will be a release of the FOMC Economic Projections, Statement, and Federal Funds Rate at 7pm London time followed by the usual press conference half an hour later.

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.