USD/CHF Forex Signal - 2 July 2019

USDCHF Analysis: Bullish above 0.9848

Yesterday’s signals were not triggered, as there was no bearish price action when 0.9848 was reached.

Today’s USD/CHF Signals

Risk 0.75%.

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

Short Trades

  • Go short following a bearish price action reversal upon the next touch of 0.9885 or 0.9916.

  • 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 Trades

  • Go long following a bullish price action reversal upon the next touch of 0.9725.

  • 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.

USD/CHF Analysis

I wrote yesterday that this pair was falling strongly to new long-term lows on risk-off sentiment and was now rebounding as risk sentiment had improved considerably over recent days. I thought that as long as risk sentiment continued to recover and the U.S. stock market continued to advance to new all-time highs, the price would continue to advance. This was a good call as the price rose quite strongly for another day, breaking up above the former resistance level at 0.9848 which has probably now become new support. I would take a bullish bias today at that support level if there is a retracement and strong bullish bounce there.
USDCHFThere is nothing of high importance due today regarding either the CHF or the USD.

Adam Lemon

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.