USD/CHF Forex Signal

Yesterday’s signals were not triggered as none of the key levels have been reached.

Today’s USD/CHF Signals

Risk 0.75%.

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

Short Trades

  • Go short following a bearish price action reversal upon the next touch of 1.0025 or 1.0058.

  • Put 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.

  • 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 0.9985, 0.9971 or 0.9957.

  • Put 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.

  • Remove 50% of the position as profit when the price reaches 20 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 a clearer break above (the upper trend line of the price channel shown in the chart) would be a sign that the price would be likely to go on to rise to test the nearest resistance level at 1.0025, but that level could well hold and provide a good short trade opportunity. I would take a bearish bias if there would be a strong bearish rejection of that level later. The trend line broke passively and we saw a move up but to only 1.0020 before the consolidation resumed. The bearish medium-trend has broken and the price is now trendless and consolidating. It is hard to say what will happen next so reversals in either direction off a key level should be equal opportunities. I think we are evenly balanced between bearish momentum and this cluster of three support levels between 0.9985 and 0.9957.USDCHFThere is nothing of high importance due today concerning the CHF. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time as well as testimony before the Senate from the Chair of the Federal Reserve.

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.