USD/CHF Forex Signal - 2 April 2019

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Yesterday’s signals were not triggered, as there was no bearish price action at 0.9965.

Today’s USD/CHF Signals

Risk 0.75%.

Trades may be entered between 8am and 5pm London time today only.

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 Trades

  • Long entry following a bullish price action reversal upon the next touch of 0.9970 or 0.9892.
  • 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 the resistance at 0.9965 again looked increasingly likely to be broken to the upside. I was ready to take a bullish bias if the price could close above it for two consecutive hours on above-average volatility, and it did so – unfortunately, so far, this entry hasn’t produced much profit.

This pair is without any long-term trend so traders should be cautious, but we see more risk-on sentiment in the market generally and that is helping this pair to rise. However, movement over the long-term is slow and ranging, with the price needing to get well clear of 1.0100 before being intro truly bullish territory.

The level at 0.9965 is likely to act as support now, and also looks likely to be today’s pivotal level, so a long trade at a strong bullish bounce there looks like today’s potential set-up for a trade – I would take a bullish bias at that point.

usdchf

There is nothing of high importance due today concerning the CHF. Regarding the USD, there will be a release of Core Durable Goods Orders data at 12:30pm 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.