USD/CHF Forex Signal

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USDCHF Analysis: Trendless ranging price action

Yesterday’s signals were not triggered, as there was no bullish price action at 0.9951.

Today’s USD/CHF Signals

Risk 0.50%.

Trades may only be entered prior to 5pm London time today.

Short Trade Ideas

  • Go short following a bearish price action reversal upon the next touch of 0.9951 or 0.9968.

  • 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 0.9900 or 0.9890.

  • 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

The technical picture has turned a little more bearish, as the support level I identified yesterday at 0.9951 was broken and then began to act as good resistance after “flipping”. However, we are still clearly in a ranging environment.

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.

The most likely and high-probability trade set up would be a long at 0.9900.USDCHFThere is nothing of high importance due today concerning the CHF. Regarding the USD, there will be a release of Philly Fed Manufacturing Index data at 1:30pm London time and Crude Oil Inventories at 4pm.

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.