USD/CHF Forex Signal

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USDCHF Analysis: Bulls held at 0.9950

Yesterday’s signals produced a profitable short trade from the bearish pin candlestick which rejected the resistance level at 0.9950.

Today’s USD/CHF Signals

Risk 0.75%.

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

Short Trade Ideas

  • Short entry following a bearish price action reversal upon the next touch of 0.9950 or 0.9966.

  • 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 Trade Ideas

  • Long entry following a bullish price action reversal upon the next touch of 0.9885 or 0.9841.

  • 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 yesterday that we could already see the bullish move was starting to slow down as it approached 0.9950 so I thought this level was very likely to be the day’s pivotal point. I was completely correct as it capped the high of the day and produced some bearish price action which gave a fairly good short trade entry.

It now looks as if the support at 0.9928 is about to break down, but the area may well hold. I think if the price breaks below 0.9920 it will fall at least a bit further, but it is quite likely there will be little action until the FOMC release due later in the New York session.

I doubt there will be much opportunity in this currency pair today, the rejection of 0.9950 was probably better than anything we will see over the coming hours.USDCHFThere is nothing of high importance due today regarding the CHF. Concerning the USD, the Chair of the Federal Reserve will be testifying before the House of Congress at 3pm London time, and there will be a release of FOMC Meeting Minutes at 7pm.

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.