USD/CHF Forex Signal - 9 September 2019

Adam Lemon

USDCHF Analysis: Consolidation likely

Last Thursday’s signals produced a profitable long trade from the bullish bounce at the support level of 0.9820. It would probably be wise to close out the remainder of any floating profit now.

Today’s USD/CHF Signals

Risk 0.50%.

Trades must be entered between 8am and 5pm London time today only.

Short Trade Idea

  • Go short following a bearish price action reversal upon the next touch of 0.9933.

  • 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 Idea

  • Go long following a bullish price action reversal upon the next touch of 0.9853.

  • 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 due to the prevailing ranging behaviour in this currency pair,

I would again avoid trading this pair but if I had to, I would look for a long trade entry at bullish price action when either 0.9800 or 0.9774 were reached. This wasn’t a bad call as although I was wrong about the precise level, I was correct about the more probable directional movement: upwards.

The price is now looking weakly bullish but is halfway between the nearest support and resistance levels. It therefore seems we are going to have a range within a range, i.e. consolidation within this area. It is a Monday with no major news scheduled and that is another reason why we are unlikely to get much directional movement today. I see this pair as best avoided by traders right now.USDCHFThere is nothing of high importance due today concerning either the CHF or the USD.

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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