USD/CHF Forex Signal

Last Thursday’s signals were not triggered, as none of the key levels were reached within the specified time.

Today’s USD/CHF Signals

Risk 0.75%.

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

Short Trades

  • Go short following a bearish price action reversal upon the next touch of 0.9849, or the bearish trend line shown in the price chart below which is currently sitting at about 0.9880.
  • 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 0.9817 or 0.9790.
  • 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 I would take a bearish bias if the price retraced to the 0.9800 level and failed to break above the area and then made a strong bearish reversal. Alternatively, I also said that a break below 0.9700 would be a very bearish sign. There was nothing wrong about this forecast, but it wasn’t useful either.

The price now looks very evenly balanced between bulls and bears, trapped between the support level at 0.9817 and the resistance at 0.9850. The only clue we have is that the medium-term structure is more bearish than bullish and is dominated overall by a well-defined bearish trend line. It is likely though that this pair will do little today, so we will probably see better opportunities in other currency pairs. The best opportunity which may arise here would probably be a short trade following a rejection of the bearish trend line.

USDCHF

There is nothing of high importance 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.