USD/CHF Forex Signal - 24 January 2019

Yesterday’s signals were not triggered as there was no bullish price action at 0.9961.

Today’s USD/CHF Signals

Risk 0.75%.

Trades may only be taken before 5pm London time today

Short Trade

  • Go short following a bearish price action reversal upon the next touch of 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 Trade  

  • Go long following a bullish price action reversal upon the next touch of 0.9892.
  • 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 yesterday that it was reasonable to take a very slightly bullish bias as long as the price held above 0.9961 but again, the price was quite likely to be held down by the parity level at 1.0000 over the short term. In fact, the price broke down below 0.9961 after initially rising, so this was a pretty good forecast.

The price now seems to be in between levels and does not look likely to make firm, strong movements in either direction today, so there are likely to be better opportunities elsewhere. I have no directional bias on this pair today.

USDCHF

There is nothing of high importance due today regarding either the USD or the CHF.

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.