USD/CHF Forex Signal

|

USDCHF Analysis: Bullish bounce at 0.9700

Yesterday’s signals were not triggered, as there was no bullish price action when 0.9725 was reached.

Today’s USD/CHF Signals

Risk 0.50%.

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

Short Trade Ideas

  • Go short 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

  • Go long following a bullish price action reversal upon the next touch of 0.9702, 0.9664, or 0.9637.

  • 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.

Advertisement
Great trade opportunities are waiting - don't wait to profit from this pair!
TRADE NOW

USD/CHF Analysis

I wrote yesterday that the price had quite a long way to fall before reaching the nearest support level at 0.9725, and it looked as if lower prices were going to happen during the day’s London and possibly also New York sessions. This was a good call as the price did continue to fall and reach that level, getting even lower and making a low close to the round number at 0.9700 which is confluent with a support level.

The price has bounced from this area as the Dollar has recovered somewhat in recent hours, and the price will probably stabilize and then be driven later by what happens to the U.S. stock market when it opens later. If stocks continue their recent strong sell-off, the price should fall further, but there are signs in the off-hours market that stocks may be finding at least a short-term bottom.

I take no directional bias 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.