USD/CHF Forex Signal

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USDCHF Analysis: Bullish above 0.9946

Yesterday’s signals were not triggered, as neither of the key levels were reached yesterday.

Today’s USD/CHF Signals

Risk 0.50%.

Trades may only be taken prior to 5pm London time today.

Short Trade Idea

  • Short entry following a bearish price action reversal upon the next touch of 0.9933 or 0.9946.

  • 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 Idea

  • Long entry following a bullish price action reversal upon the next touch of 0.9914, 0.9894, or 0.9853.

  • 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 the price was looking weakly bullish but was halfway between the nearest support and resistance levels. It therefore seemed we were going to have a range within a range, i.e. consolidation within this area. This was not a good call as the price actually rose quite firmly, printing new higher support levels, and is now threatening a very significant area of resistance between 0.9933 and 0.9946. If the price can get established above 0.9946 it will be a bullish sign, and the price has quite a lot of room to rise higher – but watch out for the major round number at 1.0000.

The bullishness here is driven more by weakness in the CHF as safe havens sell off than USD strength.

I would take a bullish bias today if we get 2 consecutive hourly closes above 0.9946.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.