USD/CHF Forex Signal - 3 July 2019

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USDCHF Analysis: Weakly bullish above 0.9841

Yesterday’s signals were not triggered, as the price action at the resistance level of 0.9885 was insufficiently bearish.

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 0.9885 or 0.9916 or 0.9950.

  • 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 yesterday that I would take a bullish bias at the support level of 0.9848 if there was a retracement and strong bullish bounce there. This did not happen until after the London close. The support there is holding but needs to be adjusted down to 0.9841. I see this currency pair as now likely to behave very similarly to the EUR/USD currency pair. The price is well within its long-term range, so the bigger picture is still a ranging price. The short-term price action at the time of writing is weakly bullish.

For these reasons, the best approach on this pair would probably be scalping for conservative profit targets from bounces as either of the nearby key levels. There will probably be better opportunities in other currency pairs today.USDCHFThere is nothing of high importance due today regarding the CHF. Concerning the USD, there will be a release of the ADP Non-Farm Employment Change forecast at 1:15pm London time followed at 3pm by ISM Non-Manufacturing PMI data.

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.
Learn more from Adam in his free lessons at FX Academy.