USD/CHF Forex Signal - 4 July 2019

|

USDCHF Analysis: Bullish consolidation above 0.9841

Yesterday’s signals produced a long trade from the bullish rejection of 0.9841. The trade is now slightly above break-even but looks a little doubtful so it might be wise to exit now.

Today’s USD/CHF Signals

Risk 0.75%.

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

Short Trade Ideas

  • Go short following a bearish price action reversal upon the next touch of 0.9885 or 0.9916 or 0.9950.

  • 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 Trade Idea

  • Go long following a bullish price action reversal upon the next touch of 0.9841 or 0.9815.

  • 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.

Advertisement
Great trade opportunities are waiting - don't wait to profit from this pair!
TRADE NOW

USD/CHF Analysis

I wrote yesterday that the bigger picture was still a ranging price with weakly bullish short-term price action. I saw the best approach as likely to be scalping for conservative profit targets from bounces as either of the nearby key levels. This was a perfect call as the nearby support held but the price moved only by a relatively small amount from there.

There is no trend, but bulls have the short to medium-term edge here as market sentiment is in “risk-off” mode which weakens the Franc. As long as the support at 0.9841 holds up, it makes sense to take a weakly bullish bias, but the real action in the Forex market right now is in the commodity currencies and the British Pound.USDCHFThere is nothing of high importance due today regarding the CHF or the USD. It is a public holiday in the U.S.A.

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.