USD/CHF Forex Signal - 9 July 2019

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USDCHF Analysis: Bulls push price up to long-term resistance area

Yesterday’s signals were not triggered, as the price has not quite reached any of the key levels.

Today’s USD/CHF Signals

Risk 0.75%.

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

Short Trade Ideas

  • Go short following a bearish price action reversal upon the next touch of 0.9950 or 0.9966.
  • 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 Ideas

  • Go long following a bullish price action reversal upon the next touch of 0.9885 or 0.9841.
  • 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 risk-on environment continues, more or less, and so the price was likely to continue to edge higher until 0.9950 is reached. This was a good call, as the price has continued to rise, making a high price less than one pip below 0.9950.

The environment continues to be bullish, as it is risk-on, with the U.S. Dollar advancing everywhere. However, we are now approaching an area of long-term resistance for this currency pair, which starts just above at 0.9950 and continues up to the parity level. We can already see the bullish move is starting to slow down as it approaches 0.9950 so I think this level is very likely to be today’s pivotal point. A bullish break may push the price up to parity, which a failure here could see the start of a sharp downwards movement. There is no long-term trend to rely upon, so the best strategy will most probably be watching what happens at 0.9950 very carefully.

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There is nothing of high importance due today regarding the CHF. Concerning the USD, the Chair of the Federal Reserve will be making a minor speech at 1:45pm London time.

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.