USD/CHF Forex Signal - 17 September 2019

Adam Lemon

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.

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.

About the Author
Adam Lemon

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.
Learn more from Adam in his free lessons at FX Academy

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