USD/CHF Forex Signal - 2 May 2019

Adam Lemon

Yesterday’s signals were not triggered, as the bullish price action at 1.0131 did not happen until after 5pm London time.

Today’s USD/CHF Signals

Risk 0.75%.

Trades must be entered before 5pm New York time today.

Short Trade

  • Go short following a bearish price action reversal upon the next touch of 1.0250.
  • 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 Trades

  • Go long following a bullish price action reversal upon the next touch of 1.0164 or 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 this pair was making a relatively bullish consolidation around the 1.0200 area, and there was nothing yet to suggest the situation would change, especially as it was a holiday in Switzerland.

The price actually sold off quite strongly before bouncing strongly and recovering from the support level at 1.0131 after the FOMC release, so this wasn’t a good call. The price has now recovered, and it seems that the U.S. Dollar is being bought as we approach the London open at the time of writing. However, it is possible the price may now be running into new lower resistance at 1.0185.

There is a long-term bullish trend in this pair, although it tends not to trend very reliably, so there is a case for taking long trades from healthy bounces at any support level.

usdchf

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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