USD/CHF Forex Signal

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USDCHF supported above 1.0070 as risk appetite recovers

Yesterday’s signals were not triggered, as none of the key levels were ever reached.

Today’s USD/CHF Signals

Risk 0.75%.

Trades must be entered between 8am and 5pm London time today only.

Short Trades

  • Go short following a bearish price action reversal upon the next touch of 1.0130 or 1.0159.

  • 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 1.0070 or 1.0053.

  • 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.

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USD/CHF Analysis

I wrote yesterday that the picture now was more bullish, but weakly so. There was a good chance that the nearest resistance level will hold today if it is reached, but if the price could get established above 1.0130 that would be a sign of increased bullishness. A long trade from a bounce at 1.0070 also looked like an attractive trade. I had no directional bias.

This was a good call as the price has continued to make a slightly bullish consolidation.

I would take the same approach again today just looking for rejections of key levels and slightly preferring long trade entries from bounces at support. However the FOMC release due later is likely to cause volatility in both directions and possible create an unpredictable directional move.USDCHFThere is nothing important due today concerning the CHF. Regarding the USD, there will be a release of the FOMC Meeting Minutes at 7pm London time.

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.