USD/CHF Forex Signal

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USDCHF Analysis: Resistance at 0.9950

Last Thursday’s signals produced a losing short trade from a bearish pin candlestick rejecting the resistance level at 0.9885.

Today’s USD/CHF Signals

Risk 0.75%.

Trades must be taken before 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 ride.

Long Trade Ideas

  • Long entry following a bullish price action reversal upon the next touch of 0.9918 or 0.9885 or 0.9975.

  • 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 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 last Thursday that the chart and the price action both looked messy and unpredictable. I thought that the only stand out feature which might have good probability was the resistance level at 0.9885 which looked likely to hold if it would be hit later today.

This approach did not work out, as there was an initial bearish reversal at that level, but it quickly broke up and the price moved up quite firmly since then.

The price is now looking more bullish, but the resistance at 0.9950 held firmly the last time it was tested, so there could be a medium-term short opportunity at another failure there if it happens. This looks likely to be today’s pivotal point.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.