USD/CHF Forex Signal - 8 May 2019

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Yesterday’s signals were not triggered, as there was no bearish price action at 1.0197.

Today’s USD/CHF Signals

Risk 0.75%.

Trades may be taken before 5pm New York time today only.

Short Trade

  • Short entry following a bearish price action reversal upon the next touch of 1.0197 or 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 1.0180 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 price looked set to fall further. I was ready to take a bearish bias if we got a bearish reversal at either of the nearby resistance levels. I thought that a major bearish turn was finally happening.

This was a wrong call, as the price turned around and shot up to make a major high, briefly threatening a serious breakout which would be likely to advance further over the coming days. However, towards the end of the New York session, the price fell quite strongly to close back below 1.0200.

This pair looks unpredictable now – the price is contained within a triangle and also a narrow band between nearby support and resistance. There is a residual bullish trend so it might that long trades from support have more potential.

I have no directional bias. A daily close above 1.0230 would be a bullish sign.

usdchf

There is nothing important 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.