USD/CHF Forex Signal

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USDCHF Analysis: 0.9946 looks very pivotal

Yesterday’s signals were not triggered, as there was no bearish price action at 0.9914 when it was hit.

Today’s USD/CHF Signals

Risk 0.50%.

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

Short Trade Idea

  • Short entry following a bearish price action reversal upon the next touch of 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 Ideas

  • Long entry following a bullish price action reversal upon the next touch of 0.9914 or 0.9889.

  • 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 situation here now was extremely congested and range-bound, and this pair was probably good for nothing more than quick scalps off any key levels which were hit, although I was not optimistic that 0.9889 would continue to hold as resistance for much longer. I was partially correct as we got a break above 0.9889 and the price continued to rise, creating new higher support levels.

The price is again near to challenging the strong medium-term resistance level at 0.9946 and this level is likely to be today’s major pivotal point. I think if get 2 hourly closes above that level, the price will be set for a rise to at least 1.0000. Conversely a bearish failure could also be a good short trade but probably only until about 0.9914.

Due to the absence of scheduled news events today, unless something dramatic happens in the Gulf or concerning the U.S. / China trade dispute, the resistance at 0.9946 will be likely to hold over the day.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.