USD/CHF Forex Signal

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USDCHF Analysis: New support at 1.0035

Yesterday’s signals were not triggered, as the bearish price action took place above 1.0053.

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 1.0053 or 1.0070.

  • 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 Trade

  • Go long following a bullish price action reversal upon the next touch of 0.9982.

  • 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 recovery in risk sentiment suggested the price was going to move up as the CHF is more of a safe haven than the USD, yet the real action in the day’s market was likely to be elsewhere. I thought that the best trade opportunity was quite likely to be scalping short off the resistance level of 1.0053 if it was reached later. I was right about the direction but wrong about scalping off 1.0053 as the level did not hold at all.

The picture now is a little more bullish thanks to the risk recovery I mentioned, plus the new technical factor of a support level emerging at 1.0035. However, the dominant price action looks quite choppy, so I am inclined to avoid trading this pair right now. I see rejections as possible of any key level shown in the chart below, whether long or short.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.