USD/CHF Forex Signal

Last Monday’s signals were not triggered, as there was no bullish price action at 0.9904.

Today’s USD/CHF Signals

Risk 0.75%.

 Trades may be taken between 8am New York time and 5pm London time today only.

Short Trades

  • Go short following a bearish price action reversal upon the next touch of 0.9904 or 0.9961.

  • 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 0.9822.

  • 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 Monday that I saw 0.9961 as likely to be the pivotal level. I was prepared to take a bearish bias if there was a strong bearish rejection of that level, but the price never quite reached it. This was an OK analysis as the price did fall and the level did hold.

The price remains mostly range-bound as is typical with this currency pair. Even though Switzerland is on holiday today, it may be possible to trade rejections of key levels because there is a lot of safe-haven flow at present with strongly falling stock markets which will tend to generate abnormally high activity in Swiss Franc trading. Therefore, I would take no bias but would look for solid rejections of key levels in any direction.USDCHF

There is nothing important due today concerning either the CHF or the USD. It is a public holiday in Switzerland and the U.K., so CHF liquidity should be thin.

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.