USD/CHF Forex Signal - 30 July 2019

Adam Lemon

USDCHF Analysis: Resistance at 0.9950 holds

Yesterday’s signals were not triggered, as the bullish price action took place below 0.9918.

Today’s USD/CHF Signals

Risk 0.75%.

Trades may only be entered between 8am and 5pm London time today.

Short Trade Ideas

  • Go short following a bearish price action reversal upon the next touch of 0.9950 or 0.9966.

  • 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 run.

Long Trade Ideas

  • Go long following a bullish price action reversal upon the next touch of 0.9900 or 0.9885 or 0.9975.

  • 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 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.

USD/CHF Analysis

I wrote yesterday that the price was 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 happened. This was a mediocre call, neither good nor bad, as that level was never reached, and the price has just gone sideways over the past 24 hours.

The price chart below shows only a small change to the technical picture, with the round number below at 0.9900 looking likely to be new support, while the resistance above at 0.9950 still looks strong.

I have no strong confidence is the likely direction of the price, but I think that if 0.9900 holds as support, we will get at least a touch of 0.9950, which might then provide a good short-term trade entry opportunity – I would take a bearish bias at a convincing, firm bearish reversal at 0.9950.USDCHFThere is nothing of high importance due today concerning the CHF. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time.

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

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