USD/CHF Forex Signal - 15 January 2019

Yesterday’s signals were not triggered, as the bullish price action took place slightly below the support level identified at 0.9817.

Today’s USD/CHF Signals

Risk 0.75%.

Trades must be entered before 5pm London time today only.

Short Trades

  • Short entry 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 0.9873.

  • 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 0.9790 or 0.9701.

  • 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 the price looked 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 had was that the medium-term structure was more bearish than bullish and dominated overall by a well-defined bearish trend line. This was a reasonably good call, as the price moved down a little over the past day, breaking below the first support level.

The situation is still finely balanced, and the price remains in a very congested zone of competing support and resistance. This makes short-term movement very unpredictable, and likely to be consolidative anyway, so it is probably best to avoid trading this pair today unless the price spikes and reverses at 0.9850 or the bearish trend line, in which cases I would be prepared to take a bearish bias.USDCHFThere is nothing of high importance due today concerning the CHF. Regarding the USD, there will be a release of PPI data at 1:30pm London time.

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.