USD/CHF Forex Signal - 29 April 2019

Adam Lemon

Last Thursday’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 before 5pm London time today.

Short Trades

  • Short entry following a bearish price action reversal upon the next touch of 1.0197 or 1.0250.
  • 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 1.0131.
  • 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 last Thursday that we were between support and resistance within a wide range with above-average volatility, which suggested that we would see the price continue to consolidate around this area. This was a good call as that was what happened – you often see a big spike in volatility and some ranging when the price puts in a high which is going to hold for a while, and this is what we saw here, which suggests it is going to be a while before the price can break up above the psychological level at 1.0250.

We now see the minor support at about 1.0200 breaking down and starting to hold as new lower resistance which is a bearish sign. If it continues to hold as the London session gets underway, as it will probably be today’s pivotal level, we will be likely to see lower prices over the day. Alternatively, if it breaks above that, we could see another attempt at 1.0250 if the Dollar reverses from its early strength and starts to get bought back in line with its long-term trend.

usdchf

There is nothing important due today concerning either the CHF or the USD.

About the Author
Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.
Learn more from Adam in his free lessons at FX Academy

Currency Pairs:
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