USD/CHF Forex Signal - 3 January 2019

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

Today’s USD/CHF Signals

Risk 0.75%.

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

Short Trade

  • Short entry following a bearish price action reversal upon the next touch of 0.9961.

  • 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 0.9744 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 we had a drift in a downwards direction, but there was a large area now without any clear levels where the price looks unpredictable. I thought that the downwards drift was likely to continue, but I wasn’t looking to trade this pair. This was probably a good call as the price has continued to range within the same area it has traded in over the past several days. The outlook is unchanged, I do not see any opportunity here right now. The potential opportunity which stands out would be a long trade from the 0.9750 area, but we are quite a long way from there.USDCHF

There is nothing of high importance due today concerning the CHF. Regarding the USD, there will be a release of ISM Manufacturing PMI data at 3pm 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.