USD/CHF Forex Signal

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USDCHF Analysis: Strong recovery from 0.9700 support area

Yesterday’s signals should have produced a profitable long trade from yesterday’s bullish rejection of the support level at 0.9664. An early entry from the near-doji candlestick would have been very profitable. It would probably be wise to look to exit this trade near the resistance level at 0.9791.

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 entry following a bullish price action reversal upon the next touch of 0.9727 or 0.9664.

  • 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 as we had a technically confused picture, and the Swiss Franc wasn’t benefitting from prevailing risk-off sentiment by much, I would avoid trading this currency pair.

As it happened, the price continued to fall yesterday to new lows below 0.9700, but then bounced very strongly off the support level at 0.9664 and rose upon the improvement of risk sentiment following the announcement that the U.S. would delay the imposition of new tariffs on some Chinese imports.

A look at the price chart below would still suggest a slight bearish bias, but recent hours have seen firmly bullish action so that would be dangerous. A better approach should be to look at what happens when the resistance at 0.9791 is reached: this could well be today’s pivotal level and it might produce either a good trade opportunity in either direction.

I would take a bullish bias if the price can get established above 0.9791 by the start of the New York session.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.