USD/CHF Forex Signal - 2 September 2019

Adam Lemon

USDCHF Analysis: Short-term bullish trend

Last Thursday’s signals were not triggered, as none of the key levels were reached within the specified time.

Today’s USD/CHF Signals

Risk 0.50%.

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

Short Trade Ideas

  • Go short 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 Ideas

  • Go long following a bullish price action reversal upon the next touch of 0.9837.

  • 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 last Thursday that the price was very evenly balanced between bulls and bears, and that there was no long-term trend in this currency pair.

For this reason, I was looking to fade reversals at the extremes such as 0.9876 or 0.9706.

This was not useful, but it was enough to keep out of trouble.

The technical picture shows that there is no long-term trend at all in this pair, which is typically choppy. Although the short-term is showing some bullish momentum, it looks unreliable, and there is no clear sign as to which support or resistance level is most likely to be reached first.

I cannot make any call on this pair today and I think it would probably be best avoided.USDCHFThere is nothing of high importance due today concerning the CHF or the USD. It is a public holiday in the U.S.A. today.

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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