USD/CHF Forex Signal

Yesterday’s signals were not triggered, as the bullish price action took place below 0.9970.

Today’s USD/CHF Signals

Risk 0.75%.

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

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 Trade

  • Long entry following a bullish price action reversal upon the next touch of 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.

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USD/CHF Analysis

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

This was a good call as the price has continued to edge up over the past 24 hours after the nearby support was invalidated. The technical picture has changed: the price chart below shows there are no nearby horizontal levels, but the price is trading within a clear and symmetrical bullish channel. The upper trend line is confluent with the nearest resistance level at 1.0015 and a short from that area could be a truly excellent, long-term high reward to risk trade. A long trade from the support at about 0.9960 might work as a double bottom too, but this trend line has already had three taps so looks less reliable.USDCHFThere 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.