USD/CHF Forex Signal - 21 January 2019

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

Today’s USD/CHF Signals

Risk 0.75%.

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

Short Trades

  • Go short following a bearish price action reversal upon the next touch of 0.9961 or 1.0008.

  • 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 0.9892 or 0.9848.

  • 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 if the price was still making higher highs after 9am London time, it would be reasonable to take a bullish bias up to 0.9961 and look for entries after pull-backs on shorter-term price charts. This was a good call as the price was making higher highs at that time and has continued to rise ever since.

Momentum has been slowing down as the price approaches close to the resistance level of 0.9961. It does not seem ready to reverse yet from there and risk sentiment is quite good, so a short trade there does not look like a good opportunity, however the price is quite likely to just consolidate below 0.9961.

If the price breaks firmly above 0.9961 and trades there for a couple of hours, it would be a bullish sign and reasonable to take a bullish bias, but the parity level at 1.0000 is quite likely to make itself felt and prevent much more of a rise over the short term.USDCHFThere is nothing important due regarding either the USD or the CHF. It is a public holiday in the USA.

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.