USD/CHF Forex Signal - 22 August 2019

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USDCHF Analysis: Bullish above 0.9803

Yesterday’s signals were not triggered, as none of the key levels have been reached yet.

Today’s USD/CHF Signals

Risk 0.50%.

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

Short Trade Ideas

  • Short entry 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

  • Long entry following a bullish price action reversal upon the next touch of 0.9803, 0.9774, or 0.9750.
  • 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.

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USD/CHF Analysis

I wrote yesterday that the prevailing weakly bullish situation was again likely to persist but only until the FOMC release due later towards the end of the day’s New York session.

This was a good call as the price broadly rose over the day before beginning to consolidate at around the time of the FOMC release.

The picture is now slightly more bullish, with new higher support forming at 0.9803 which is very confluent with the round number just 3 pips below.

It makes sense to maintain a bullish bias and to look for long trades following firm bullish bounces at any of the three nearby support levels. I would take a bullish bias if such a set-up happens today in 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.
Learn more from Adam in his free lessons at FX Academy