USD/CHF Forex Signal - 15 July 2019

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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 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.