USD/CHF Forex Signal

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USDCHF Analysis: 0.9700 continues to hold as support

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

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 0.9791 or 0.9840.

  • 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 0.9702, 0.9664, or 0.9637.

  • 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 the price was right in the middle of a zone between 0.9702 and 0.9788 and going nowhere, so I would again take no directional bias, but would look to scalp reversals at either 0.9702 or 0.9791. I thought that both of these levels would survive Thursday without being broken. They did, but they were not even touched so there was no opportunity from my forecast, but it did accurately reflect what happened.

The price has continued to range and while the Swiss Franc is strong as are all safe-haven assets, it seems that the support confluent with the round number at 0.9700 is strong and will be hard to break. This means that the best opportunity may well be a failed breakdown of 0.9700 which quickly reverses and gives a long entry opportunity, although it probably won’t get very far so profits may have to be quite conservative.

I have no overall directional bias here on this currency pair today.USDCHFThere 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.