USD/CHF Forex Signal - 7 May 2019

Adam Lemon

Yesterday’s signals were not triggered, as there was no bearish price action at either 1.0170 or 1.0180.

Today’s USD/CHF Signals

Risk 0.75%.

Trades must be entered between 8am London time and 5pm New York time today only.

Short Trade

  • Go short following a bearish price action reversal upon the next touch of 1.0197 or 1.0180.
  • 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.

USD/CHF Analysis

I wrote yesterday that the line of least resistance is downwards, and I thought that the day was most likely to be a down day, and I would take a bearish bias if there were a healthy rejection of either of the nearby resistance levels.

I was right about the overall direction over the day, as the price is now lower, and looks set to fall further. So, I think today is likely to be a down day. I would take a bearish bias if we get a bearish reversal at either of the nearby resistance levels. The price has been refusing to move higher for several days now and it looks like the bearish turn is finally happening.

USD/CHF Signal

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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