USD/CHF Forex Signal - 25 April 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 must be entered between 8am and 5pm London time today only.

Short Trade

  • Go short following a bearish price action reversal upon the next touch of 1.0250.
  • 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

  • Go long following a bullish price action reversal upon the next touch of 1.0131.
  • 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.

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USD/CHF Analysis

I wrote yesterday that the odds were still for higher prices beyond yesterday’s high, but this may take a while to happen. I was ready to take a bullish bias until 1.0250 yesterday if we got a strong hourly close above 1.0220.

This was a good call as we never got such a close above 1.0220, with the price failing to break to new highs but not decisively falling either.

We are between support and resistance within a wide range with above-average volatility, which suggests that we will see the price continue to consolidate around this area. However, the U.S. Dollar remains strong, so be very careful about taking any short trades.

A sustained break above 1.0250 would be a very significant bullish sign.

usdchf

There is nothing important due today concerning the CHF. Regarding the USD, there will be a release of Core Durable Goods Orders 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.