USD/CHF Forex Signal

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USDCHF Analysis: Very range-bound

Last Thursday’s signals produced a profitable short trade from the bearish inside candlestick which rejected the resistance level at 0.9946. It would probably be wise to close this trade now for profit as it looks as if the price is not really going anywhere.

Today’s USD/CHF Signals

Risk 0.50%.

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

Short Trade Ideas

  • Go short following a bearish price action reversal upon the next touch of 0.9914 or 0.9946.

  • 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 Idea

  • Go long following a bullish price action reversal upon the next touch of 0.9853 or 0.9842.

  • 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.

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USD/CHF Analysis

I wrote last Thursday that much of the day’s action would probably depend upon the U.S. inflation data due later. If that news caused a bullish breakout above 0.9950 and we got 2 consecutive hourly closes above that level, I would call a bullish breakout and take a long bias.

This was a good call as I was right about that rough area being the pivotal point of the day. The price fell from the key resistance at 0.9946.

The situation now is extremely congested and range-bound, and this pair is probably good for nothing more than quick scalps off any key levels which are hit, although I am not optimistic that 0.9889 will continue to hold as resistance for much longer.USDCHFThere is nothing of high importance due today concerning either the CHF or 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.
Learn more from Adam in his free lessons at FX Academy.