USD/CHF Forex Signal

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USDCHF Analysis: Short-term bullish trend topped out

Yesterday’s signals were not triggered, as none of the key levels were ever reached.

Today’s USD/CHF Signals

Risk 0.50%.

Trades must be taken before 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.

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USD/CHF Analysis

I wrote yesterday the CHF was acting as a European currency today and not as a safe haven. This meant there could be knock-on volatile movement in this pair.

I had no directional bias, but I saw a short trade from the nearby resistance levels as a potentially good trade entry opportunity.

This was a good call as although the price never quite reached the resistance to trigger a short trade entry signal, the levels of course held, and the price has fallen over the day.

The price is now in the middle of a wide zone between the nearest support and resistance levels but is showing short-term bullish momentum.

This rise will probably continue for a while, but it is hard to say how far it will go.

I would stand aside from trading this pair today, but if I had to, I would look for a long trade and not a short one.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.