USD/CHF Forex Signal - 27 June 2019

|

USDCHF Analysis: Bullish retracement against trend continues

Yesterday’s signals were not triggered, as none of the key levels were reached during this time.

Today’s USD/CHF Signals

Risk 0.75%.

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

Short Trade

  • Go short following a bearish price action reversal upon the next touch of 0.9848.

  • 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 0.9793 or 0.9701.

  • 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.

Advertisement
Great trade opportunities are waiting - don't wait to profit from this pair!
TRADE NOW

USD/CHF Analysis

I wrote yesterday that the Dollar was recovering and safe havens such as the Swiss Franc were weakening. I thought that this may well persist, but equally it might just be a temporary retracement within a bigger trend against the Dollar, so I would be prepared to take a bearish bias on this pair if we got a bearish failure and strong bearish bounce when the nearest resistance level of 0.9793 was reached.

The level was not reached until the Asian session, when the price broke above it quite easily, and it may well have turned to support now. A test of that level now from above should be revealing, if it holds up firmly, we can expect the price to continue to rise as there is no resistance until 0.9848 so I would take a bullish bias if we get that outcome. There has been a lot of activity in this pair lately so it will probably be one of the currency pairs worth keeping an eye on as long as the market continues to be so driven by risk-on vs. risk-off considerations.USDCHFThere is nothing of high importance due today regarding the CHF. Concerning the USD, there will be a release of Final GDP data at 1:30pm London time.

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.