USD/CHF Forex Signal - 3 December 2018

Last Thursday’s signals were not triggered, as none of the key levels were reached that day.

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 1.0008, 1.0035 or 1.0046.

  • 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 0.9939 or 0.9918.

  • 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 the price had broken below the support at 0.9958 but seemed to be holding at 0.9918. This pair was in a ranging condition, so any reversal long or short from a good level was all the same to me and I took no directional bias. This wasn’t a bad call.

Today the U.S. Dollar is particularly weak, so the price is falling here. However, it is risky assets which are truly benefiting at the expense of the greenback, so we can expect the move down here to be limited. This means that we can still expect any reversals at key levels to be tradable. I would take a bullish bias later if we get a healthy bullish reversal following a touch of the key support level at 0.9939.USDCHF

There is nothing important due today concerning the CHF. Regarding the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time.

Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.