USD/CHF Forex Signal

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Last Thursday’s signals produced a profitable short trade from the bearish rejection of the resistance level at 0.9955.

Today’s USD/CHF Signals

Risk 0.75%.

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

Short Trade

  • Short entry following a bearish price action reversal upon the next touch of 0.9955.
  • 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 Trade

  • Long entry following a bullish price action reversal upon the next touch of 0.9848.
  • 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 last Thursday that the direction now had become much less certain. A sustained break above 0.9955 would be a bullish sign, so I thought this level was quite likely to be the day’s pivotal point. This was a great call as it held as the high of the day almost to the pip.

The price has continued to move down slowly in wide swings, invalidating a former support level at 0.9926. I would be more bearish as the flow is downwards, but we may have a bullish double bottom which has formed just above the support level at 0.9848. Rejections of either support or resistance would be likely to produce good trade entry opportunities here, but the fact that Switzerland is on holiday and seems to drive so much of the Swiss Franc market these days may mean little happens here over the coming hours. I have no directional bias today.

usdchf

There is nothing important due today concerning either the USD or the CHF. It is a public holiday in Switzerland today.

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.