USD/CHF Forex Signal - 17 June 2019

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USDCHF Analysis: Can bulls break parity level?

Last Thursday’s signals were not triggered as the bearish price action took place slightly above 0.9957.

Today’s USD/CHF Signals

Risk 0.75%.

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

Short Trades

  • Short entry following a bearish price action reversal upon the next touch of 1.0011, 1.0033, or 1.0065.

  • 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 0.9960, 0.9948, or 0.9906.

  • 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 problem with trading the Swiss Franc was that the SNB were giving their quarterly policy statement and rate and this could cause very unpredictable movement. However. if the SNB weaken the Franc, in line with the short-term bullish trend, a long trade could be a profitable entry.

Therefore, I was only long trades above 0.9957. This was enough to keep out of trouble as the price action never really broke above that area of resistance over the day.

The picture now is more bullish, with the price building higher support levels. However, there is no long-term trend, and the price is approaching parity and a few resistance levels nearby which are very likely to be enough to halt the advance.

Due to the overall choppy picture, I would tend to stand aside from trading this currency pair today.USDCHF There is nothing important 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.
Learn more from Adam in his free lessons at FX Academy.