USD/CHF Forex Signal - 4 June 2019

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

Today’s USD/CHF Signals

Risk 0.75%.

Trades may only be taken between 8am and 5pm London time today.

Short Trades

  • Go short following a bearish price action reversal upon the next touch of 0.9934 or 0.9955.
  • 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 0.9892, 0.9848, 0.9816 or 0.9790.
  • 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 had become much more bearish. Since the end of last week, market sentiment had become strongly risk-off as stock markets have continued to sell off. Safe havens have been boosted and the Swiss Franc has acted strongly as a safe haven. I was ready to take a bearish bias if the price closed below 0.9970 at 9am London time. It did so, and after an initial bullish retracement close to the big round parity number of 1.0000, it fell strongly to lower prices, so this was a good call as this currency pair is down over the day.

The picture still looks bearish, but the price has now reached an area with multiple support levels, so the move down may well slow or even halt. Therefore, I would only take a bearish bias today if we get a strong bearish rejection of 0.9955 after a bullish retracement which tests that level.

usdchf

There is nothing important due today concerning the CHF. Regarding the USD, the Chair of the Federal Reserve will be giving a speech at 2:55pm 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.