USD/CHF Forex Signal - 4 September 2019

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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 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