USD/CHF Forex Signal - 24 June 2019

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USDCHF Analysis: Strong Franc making new multi-month highs

Last Thursday’s signals were not triggered, as there was no bullish price action at 0.9848.

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 0.9793 or 0.9848.

  • 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 0.9701 or 0.9664.

  • 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 safe havens were relatively strong today and the Swiss Franc was no exception, but the move down may be running out of steam, and the long-term trend was certainly choppy, so it was difficult to have much confidence in direction. This was an overly cautious call, as the price has continued to fall strongly and break to new multi-month lows. The Swiss Franc has the greatest long-term strength of any major currency, so shorting this currency pair seems to have the odds in favour of it now. Bears should be aware that this pair in recent years has tended to snap back strongly and suddenly against emerging major trends, so be careful shorting this.

I would take a bearish bias today if we get a bearish failure at any key resistance level.USDCHFThere 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