USD/CHF Forex Signal - 11 July 2019

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USDCHF Analysis: Weak Dollar drives price down

Yesterday’s signals were not triggered, as there was no bullish price action at 0.9885.

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 0.9885, 0.9929, or 0.9950.

  • 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 0.9841 or 0.9815.

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

This was a good call as we have seen the price move down further, initially due to the sell-off from the long-term resistant area at 0.9950, and then later due to the general weakening of the Dollar after the Fed signalled a more dovish approach to interest rates ahead.

The price is well within its long-term range and has no momentum left, so I have no directional bias today and I think any opportunities in the Forex market are likely to arise elsewhere today.USDCHFThere is nothing of high importance due today regarding the CHF. Concerning the USD, there will be a release of CPI (Inflation) data at 1:30pm London time today, followed by testimony from the Chair of the Federal Reserve before the Senate at 3pm.

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.
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