USD/CHF Forex Signal

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USDCHF Analysis: Can bulls break parity level yet?

Yesterday’s signals were not triggered, as none of the key 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 1.0011, 1.0033, or 1.0065.

  • 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 0.9957, 0.9928, or 0.9906.

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

This was a good call, and although the price held up above support and advanced, it was indeed held down (so far) by the parity level.

The support levels have had to be adjusted slightly, but the technical picture remains the same.

I would avoid trading this pair as it is behaving strangely out of sync with the general market environment.USDCHFThere 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.