USD/CHF Forex Signal - 14 February 2019

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

Today’s USD/CHF Signals

Risk 0.75%.

Trades must be entered between 8am and 5pm London time today only.

Short Trade

  • Short entry following a bearish price action reversal upon the next touch of 1.0110.

  • Place 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.

  • 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 1.0028 or 0.9986.

  • Place 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.

  • 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.

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 the U.S. Dollar was quite strong but was not advancing very strongly here. I thought there was a weak likelihood of higher prices today if the price could get established above 1.0050. This was a good call, although the price fell back later to the level at 1.0052 which now seems to have become established as support.

There is a case to be bullish as long as 1.0052 holds as the London session gets underway, but the U.S. Dollar is more mixed now, and as this pair tends not to trend, I would be more excited about a possible strong reversal at 1.0110 providing a short trade opportunity if it is reached later.
USDCHFThere is nothing of high importance due today regarding the CHF. Concerning the USD, there will be releases of Retail Sales and 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.