USD/CHF Forex Signal - 21 August 2019

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USDCHF Analysis: Still bullish above 0.9774

Yesterday’s signals were not triggered as the support level at 0.9774 was not reached until after 5pm London time, although it held very precisely.

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 0.9774, 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 yesterday that in the absence of any major news (and nothing was scheduled for yesterday), we were likely to see this (dominant) weak bullish situation persisting. This was a good call as the price held up at the nearest support level when it was reached.

Technically, there is no change to this weakly bullish situation, which again is likely to persist but only until the FOMC release due later towards the end of today’s New York session.

I again take no directional bias on this currency pair, as I see the bullishness as very weak.

usdchf

There is nothing of high importance due today concerning the CHF. Regarding the USD, there will be a release of FOMC Meeting Minutes at 7pm London time.

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.