USD/CHF Forex Signal

Last Monday’s signals were not triggered, as the bullish price action took place a little way below the support level at 0.9985.

Today’s USD/CHF Signals

Risk 0.75%.

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

Short Trades

  • Short entry following a bearish price action reversal upon the next touch of 1.0015, 1.0053, or 1.0066.
  • 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 Trade

  • Long entry following a bullish price action reversal upon the next touch of 0.9982.
  • 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.

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USD/CHF Analysis

I wrote last Monday that a likely scenario would be 1.0015 holding as resistance, and then a rapid bearish break, because the price has a lot of room to fall if it can get below 0.9980. Such a bearish break would likely be on higher volatility and would happen quickly.

This scenario has not played out yet. Although we have the nearby supportive area holding up, the supportive trend line has been invalidated, so a breakdown below 0.9982, if strong, could produce a sharp, long drop – so that short trade from the break or strong rejection of 1.0015 is still worth watching out for. On the other hand, if the price can break firmly above 1.0015, that would be a bullish sign.

usdchf

There is nothing of high importance due today concerning the CHF. Regarding the USD, there will be a release of CPI data at 12:30pm London time, and FOMC Meeting Minutes at 6pm.

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.