USD/CHF Forex Signal - 22 April 2019

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Last Thursday’s signals were not triggered, as there was no bearish price action at 1.0150.

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 1.0191 or 1.0207.
  • 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 1.0093, 1.0081, or 1.0068.
  • 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 Thursday that a major bearish reversal was quite likely to occur in this area because the price was near 2-year highs and actually made a new 1-year high, which is technically very significant, as this pair has tended to revert to the mean in recent years from extreme highs and lows. Interestingly, although the Dollar is quite strong, the real driver here seems to weakness in the Swiss Franc, and over the weekend the Swiss National Bank made it clear that they are happy to see the Swiss Franc weaken further. This has been enough to push the price up towards its highs of last week already, despite today’s holiday and thin liquidity.

This pair is always a little dangerous to trade, but we have here one of the most interesting situations in the Forex market right now and there might be some easy pips to make on the long side now. I would take a bullish bias above 1.0160 to 1.0190 after New York opens later.

usdchf

There is nothing important due today concerning either the CHF or the USD, and it is a public holiday today in Switzerland.

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.