USD/CHF Forex Signal - 7 February 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 may only 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 1.0035 or 1.0046.

  • 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 0.9992 or 0.9971.

  • 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 we were starting to see a definite though perhaps shaky medium-term bullish trend get established, with new higher support levels printed above 0.9957, and the resistance just above parity at 1.0008 invalidated – both of which were bullish signs.

I thought it was likely we would see higher prices today and I was right, this was a good call.

The Dollar still looks bullish, although the Swiss Franc is not particularly weak. All in all, higher prices are still likely to happen, but there are two key resistance levels not far away. I think we will see the price hit at least 1.0035 today.USDCHFThere is nothing of high importance due today regarding either the CHF or the USD.

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.