USD/CHF Forex Signal

Yesterday’s signals were not triggered as there was no bullish price action at either 0.9985 or 0.9971.

Today’s USD/CHF Signals

Risk 0.75%.

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

Short Trade

  • Short entry following a bearish price action reversal upon the next touch of 1.0025.

  • 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 Trade

  • Long entry following a bullish price action reversal upon the next touch of 0.9957.

  • 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 that as it was hard to say what would happen, next so reversals in either direction off a key level should be equal opportunities. I thought we were evenly balanced between bearish momentum and this cluster of three support levels between 0.9985 and 0.9957. This wasn’t a bad call as after a strong move down, the price did recover sharply, and is now moving down again. I can draw a new resistance level at 0.9988 but I really have no faith in it. Instead I see the technical picture as dominated by a slower, new downwards price channel which is drawn in the chart below. I see the only opportunities here as reversals at 1.0025 and 0.9957 and this pair may be worth paying attention to as there is more volatility and cleaner and stronger price swings.USDCHFThere is nothing of high importance due today concerning the CHF. Regarding the USD, there will be a release of Advance GDP 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.