USD/CHF Forex Signal

Yesterday’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 between 8am and 5pm New York time today.

Short Trade

  • Short entry following a bearish price action reversal upon the next touch of 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 Trades

  • Long entry following a bullish price action reversal upon the next touch of 1.0164 or 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.

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USD/CHF Analysis

I wrote yesterday that the Dollar seemed to be in retreat, so it looked likely that we would see a deeper bearish retracement over the course of today. I was ready to take a bullish bias if got get a strong bullish bounce at either of the nearest support levels after the New York open later today.

This scenario never happened although we did get a minor retracement. Essentially, this pair is making a relatively bullish consolidation around the 1.0200 area, and there is nothing yet to suggest the situation will change, especially as today is a holiday in Switzerland.

This pair is probably best avoided, but an optimistic release from the FOMC tonight could see a strong bullish move and perhaps even a break above the psychologically important 1.0250 level.

usdchf

There is nothing important due today concerning the CHF – it is a public holiday in Switzerland today. Regarding the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time, followed by the FOMC Statement and Federal Funds Rate at 7pm and the press conference half an hour later.

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.