USD/CHF Forex Signal

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USDCHF Analysis: Selling off from 0.9850?

Last Thursday’s signals were not triggered, as none of the key levels were reached during that day’s trading session.

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 0.9850 or 0.9909.

  • 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 Idea

  • Long entry following a bullish price action reversal upon the next touch of 0.9815.

  • 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 last Thursday that although we had 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 remained well within its long-term range and had no momentum left, so I had no directional bias today. This was a relatively good call as the price reversed during the early part of Thursday before falling and selling off again.

The U.S. Dollar remains weak and the Swiss Franc has long-term strength, so it could be argued there is a little bearish momentum. However, the price is quite close to support, and is trading within a long-term range, which makes me nervous to have any directional bias, even though sellers have just stepped in at 0.9850.

The most likely scenario today is a continued fall to anywhere between 0.9840 and 0.9815, with a bullish reversal happening somewhere in that zone, but I do not think we will see a lot of price movement anyway.USDCHFThere 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.