USD/CHF Forex Signal

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USDCHF Analysis: Weakly bullish above 0.9940

Yesterday’s signals produced a short trade following the bearish inside candlestick rejection on the H1 price chart of the resistance level identified at 0.9969. This has not quite made the minimum 20 pips profit, but it would be wise to exit this trade immediately.

Today’s USD/CHF Signals

Risk 0.50%.

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

Short Trade Ideas

  • Short entry following a bearish price action reversal upon the next touch of 0.9969 or 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 0.9940, 0.9911 or 0.9876.

  • 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.

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USD/CHF Analysis

I wrote yesterday that the price was likely to hit the new higher support at 0.9940 which could be good for a long scalp at least or maybe even something stronger. That level is still intact, so this wasn’t a bad call as such, but it was not very useful. However, the nearest resistance level I identified did hold very precisely and give a slightly profitable short trade. The price action remains generally bullish above 0.9940, so that short should probably be exited.

I see 0.9940 as the pivotal point here and it may still be good for a long trade if it produces a solid bullish bounce. There is a weak but real medium-term bullish trend and the price is still slightly more likely than not to push on upwards towards the parity area around 1.0000 over the coming days.USDCHFThere is nothing of high importance due today concerning the CHF. Regarding the USD, there will be a release of CB Consumer Confidence data at 2pm London time.

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.