USD/CHF Forex Signal - 21 May 2019

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USDCHF supported above 1.0070 as risk appetite recovers

Yesterday’s signals were not triggered, as the bullish price action took place below 1.0087 but above 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 1.0130 or 1.0159.

  • 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 we were seeing risk appetite returning to the market despite no obvious progress concerning the trade dispute and also rising tension in the Persian Gulf.

I had no confidence in any strong directional movement here, although I thought that a sustained break above 1.0130 would be a bullish sign if it happened.

The picture now is more bullish, but weakly so. There is a good chance that the nearest resistance level will hold today if it is reached, but if the price can get established above 1.0130 that would be a sign of increased bullishness. A long trade from a bounce at 1.0070 also looks like an attractive trade. I have no directional bias today on this currency pair.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.