USD/CHF Forex Signal - 20 August 2019

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USDCHF Analysis: Weakly bullish above 0.9774

Yesterday’s signals produced a profitable long trade from the bullish inside candlestick which rejected the support level at 0.9775. It would probably be wise to close this trade fully for profit as the price action suggests we may not see higher prices soon.

Today’s USD/CHF Signals

Risk 0.50%.

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

Short Trade Ideas

  • Go short following a bearish price action reversal upon the next touch of 0.9840 or 0.9876.
  • 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 0.9774, 0.9750, or 0.9706.
  • 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 there was no trend, and I saw 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 was precisely confluent with a major psychological level. The price did not reach this level, acting more bullishly instead at 0.9774 where it made a bounce and moved to reach new higher highs, although this movement has not been very strong, and it may not last much longer, at least that is what the short-term price action suggests.

We can say the picture is a little more bullish. Stocks and the U.S. Dollar are generally rising, and there is not much flow into safe havens right now such as the Swiss Franc. In the absence of any major news (and nothing is scheduled for today), we are likely to see this weak bullish situation persisting. So, I see the best trades which may set up as still likely to be longs from bullish reversals at support levels, but there may well be a short opportunity instead.

I have no solid directional bias today on this currency pair.

usdchf

There is nothing of high importance due today concerning either 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.