USD/CHF Forex Signal - 16 October 2019

Adam Lemon

USDCHF Analysis: Trendless ranging price action

Yesterday’s signals were not triggered as the bearish price action took place above 0.9989.

Today’s USD/CHF Signals

Risk 0.50%.

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

Short Trade Idea

  • Short entry following a bearish price action reversal upon the next touch of 1.0033.
  • Place the stop loss 1 pip above the local swing high.
  • Adjust the stop loss to break even once the trade is 20 pips in profit.
  • Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.

Long Trade Ideas

  • Long entry following a bullish price action reversal upon the next touch of 0.9951 or 0.9901.
  • Place the stop loss 1 pip below the local swing low.
  • Adjust the stop loss to break even once the trade is 20 pips in profit.
  • Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.

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

The only think worth mentioning which happened with this pair over the past 24 hours is the invalidation of the former resistance level nearest to the price action at 0.9989. This arguably makes the picture just a shade more bullish, but a glance at the price chart below shows that it has been a trendless, ranging picture in this pair for a long time, and there is no real sign of this changing yet.

This environment suggests that trading reversals off key levels in either direction, especially at the extremes of the price chart shown below, would be a logical approach to trading this currency pair today.

This means a long at 0.9900 or a short at 1.0033.

usdchf

There is nothing of high importance due today concerning the CHF. Regarding the USD, there will be a release of Retail Sales data at 1:30pm London time.

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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