USD/CHF Forex Signal

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USDCHF consolidating between 1.0050 and 1.0120

Yesterday’s signals may have produced a long trade from the near-doji hourly candlestick which rejected the support level identified at 1.0070. The trade is barely in profit and does not seem to be progressing well so it might be wise to move the stop loss to break even.

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 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. This was a good call as although the price has not moved much, the support at 1.0070 did hold when it was reached yesterday.

I take the same approach again today – rejections of key levels at extremes of the price chart shown below in either direction could provide acceptable trade entries. I prefer long trades but very marginally.USDCHFThere 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.