USD/CHF Forex Signal

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USDCHF Analysis: Bulls failing at 0.9800 area

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

Today’s USD/CHF Signals

Risk 0.50%.

Trades must be taken between 8am and 5pm London time today only.

Short Trade Ideas

  • Short entry following a bearish price action reversal upon the next touch of 0.9840 or 0.9876.
  • 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 0.9775, 0.9750, or 0.9706.
  • 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 either a long from a rejection of support at 0.9706 or a short from a rejection of the resistance level at 0.9791 would be equally good trade opportunities, as both levels were quite confluent with round numbers.

Neither of those levels were reached that day, but the price does appear to be holding now from the 0.9800 area as it fails to rise higher, so in a sense this was an accurate call.

There is no trend, and I see the best opportunity here which might set up as a long trade entry from a bullish bounce at the support level of 0.9750 as it is precisely confluent with a major psychological level. I would take a cautious bullish bias if this sets up, but only to the 0.9800 area.

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There is nothing of high importance due today concerning 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.