USD/CHF Forex Signal - 29 May 2019

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Yesterday’s signals were not triggered as there was no bearish price action at either 1.0053 or 1.0070.

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 1.0066 or 1.0100.
  • 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 1.0035.
  • 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 picture now was a little more bullish thanks to the risk recovery I mentioned, plus the new technical factor of a support level emerging at 1.0035. However, the dominant price action looked quite choppy, so I was inclined to avoid trading this pair right now. This was not a great call as the increasing bullishness I saw was a sign that the price was going to move up quite strongly, all the way to 1.0100. However, the price then fell from there and has printed new lower resistance on its way back down to the area from where it began the move, at 1.0066.

I have no directional bias and overall see the movement here as very difficult to predict and quite choppy, with bulls and bears very evenly balanced. For this reason, I would continue to avoid trading this pair for the time being.

usdchf

There 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.