USD/CHF Forex Signal - 20 June 2019

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USDCHF Analysis: Strong Franc but long-term choppy range 

Yesterday’s signals were not triggered as there was no sufficiently bullish price action when any of the key support levels were reached.

Today’s USD/CHF Signals

Risk 0.75%.

Trades may only be taken before 5pm London time today.

Short Trades

  • Go short following a bearish price action reversal upon the next touch of 0.9916, 0.9950, or 0.9966.
  • 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 0.9848 or 0.9916.
  • 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 there was little going on between the CHF and the USD, the best that could be said is that it may be possible to scalp off any bounce from a key level in either direction for conservative profit targets. There was no long-term trend, but I thought that long trades may be slightly better than short trades today.

This wasn’t a great call as even before the FOMC release which weakened the USD everywhere, the Franc was strengthening.

Safe havens are relatively strong today and the Swiss Franc is no exception, but the move down may be running out of steam, and the long-term trend is certainly choppy, so it is difficult to have much confidence in direction. As such, I think a bullish bounce at 0.9848 could be very interesting, and I would look to take a long bias if that sets up later.

usdchf

There is nothing of high importance due today regarding either the CHF or the USD.

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.
Learn more from Adam in his free lessons at FX Academy