USD/CHF Forex Signal - 28 August 2019

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USDCHF Analysis: More bullish above 0.9800

Yesterday’s signals were not triggered as the low of the day was 1 pip above 0.9774 and there was no bearish price action at 0.9818.

Today’s USD/CHF Signals

Risk 0.50%.

Trades must be taken between 8am and 5pm London time today only.

Short Trade Ideas

  • Go short following a bearish price action reversal upon the next touch of 0.9830 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

  • Go long following a bullish price action reversal upon the next touch of 0.9800 or 0.9774.

  • 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 it was looking as if the price here was very evenly balanced, without any real trend, so it could be possible to take rejections of either nearby key level, as if the consolidation would continue. This was not a good call, as the price instead advanced bullishly.

The picture is more bullish now, with an increasing short-term momentum pushing the price upwards.

I think it is likely that the price will break above the resistance at 0.9830 but I think that 0.9876 will hold today. The level at 0.9830 looks likely to be the day’s pivotal point and I would take a bullish bias if we get 2 consecutive hourly closes above that level.USDCHFThere is nothing of high importance due today concerning the CHF. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm 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.