USD/CHF Forex Signal

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USDCHF supported above 1.0050 as risk appetite made a small recovery

Yesterday’s signals were not triggered as there was no bullish price action when 1.0070 was first reached.

Today’s USD/CHF Signals

Risk 0.75%.

Trades may be taken before 5pm London time today only.

Short Trades

  • Short entry following a bearish price action reversal upon the next touch of 1.0093 or 1.0130.

  • 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 1.0070 or 1.0053.

  • 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 this pair was now going to be very sensitive to market sentiment over the trade dispute. If the resistance at 1.0093 keeps holding, the price will become more likely to resume its downwards movement, so that is likely to be today’s pivotal point.

This was a good call as the resistance level at 1.0093 acted as the high of the day and the price fell after making a bearish reversal there after the London close.

It now looks as if bulls and bears are evenly balanced over the medium term so rejections of either 1.0093 or 1.0053 are likely to provide attractive reversal trade entry opportunities.

I have no directional bias on this currency pair today.USDCHFThere 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.