USD/CHF Forex Signal - 23 July 2019

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USDCHF Analysis: Bulls face resistance from 0.9850 area

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

Today’s USD/CHF Signals

Risk 0.75%.

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

Short Trade Ideas

  • Go short following a bearish price action reversal upon the next touch of 0.9847, 0.9860, or 0.9885.
  • 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 Trade Idea

  • Go long upon the next touch of 0.9725.
  • 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 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 yesterday that the picture remained weakly bearish as long as the price keeps below 0.9850. I doubted the price would break below 0.9800 today. This was a good call overall as the price moved down over yesterday’s London session, but it never reached the round number at 0.9800.

The price has now recovered to test the resistant area which begins just below 0.9850. The resistance here will probably hold although the Dollar is strengthening. If the price can get established above 0.9860 it would be a bullish sign; if above 0.9885, a very bullish sign.

usdchf

There is nothing of high importance due today regarding 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.