USD/CHF Forex Signal - 7 March 2019

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

Today’s USD/CHF Signals

Risk 0.75%.

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

Short Trades

  • Short entry following a bearish price action reversal upon the next touch of 1.0058 or 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 1.0025 or 0.9965.

  • 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 there was no doubt that we had a medium-term bullish trend now in this pair, although to get very bullish we really needed to see the price above 1.0110 first. I said that if the price could get established above 1.0058 during the London session and trade there for a couple of hours, I would take a bullish bias.

This was an OK call as the price never did break above 1.0058 so it was enough to stay out of trouble. Instead we have had a bullish consolidation below that level. The technical outlook is essentially unchanged from yesterday, a couple of hours above 1.0058 would still be a good bullish sign. Bulls can also look to whether the support at 1.0025 holds. The problem is that the ECB is giving its monthly input later and this can have a strong knock on highly correlated currencies such as the CHF, so at the time of that release and press conference the price can go anywhere.

Overall, I feel more comfortable taking long trades in this pair than short trades.USDCHFThere is nothing of high importance due today concerning 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.