USD/CHF Forex Signal - 8 April 2019

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

Today’s USD/CHF Signals

Risk 0.75%.

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

Short Trades

  • Go short following a bearish price action reversal upon the next touch of 1.0015, 1.0053, or 1.0066.
  • 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 0.9985.
  • 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 last Thursday that the technical picture had changed: there were no nearby horizontal levels, but the price was trading within a clear and symmetrical bullish channel. This was a good approach as the channel has continued to hold and the action has been essentially bullish. The price is currently bouncing bullishly from the support at 0.9985 which is a bullish sign, and if the price can advance another 100 pips or so, it will be reaching bullish long-term highs. However, a more 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.

usdchf

There 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.
Learn more from Adam in his free lessons at FX Academy.