USD/CHF Forex Signal - 8 July 2019

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USDCHF Analysis: Slow medium-term bullish movement

Last Thursday’s signals were not triggered, as none of the key levels were reached.

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 0.9950 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 run.

Long Trade Ideas

  • Long entry following a bullish price action reversal upon the next touch of 0.9885 or 0.9841.

  • 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 last Thursday that there was no trend, but bulls had 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 held up, it made sense to take a weakly bullish bias, but the real action in the Forex market was in the commodity currencies and the British Pound.

This was a good call, as the price has risen and become established above higher support at 0.9885. The risk-on environment continues, more or less, and so the price is likely to continue to edge higher until 0.9950 is reached. The parity area at 1.0000 has acted as long-term resistance also.USDCHFThere is nothing of high importance due today regarding the CHF or the USD.

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