USD/CHF Forex Signal

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USDCHF Analysis: Bullish breakout above 0.9943

 

Last Thursday’s signals produced an excellent and nicely profitable long trade from the bullish bounce at the support level of 0.9915. It would be worth tightening the stop loss and taking the remainder of profit if the price does not hold up above the higher support level at 0.9943.

Today’s USD/CHF Signals

Risk 0.50%.

Trades may only be entered before 1pm London time today.

Short Trade Idea

⦁ Go short following a bearish price action reversal upon the next touch of 1.0033.

⦁ 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

⦁ Long entry following a bullish price action reversal upon the next touch of 0.9943 or 0.9915.

⦁ 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 that I was prepared to take a bearish bias following a reversal at 0.9945 or a bullish bias if we get two consecutive hourly closes above that price during the New York session today. We got those 2 closes, which should have produced a profitable long trade entry which made at least a few pips, so this was a good call.

The strengthening of the USD last week plus the increase in “risk-off” sentiment in the markets generally has boosted this pair, and the breakout above 0.9945 from the triangle is technically significant. However, the area around 1.0000 has tended to hold as resistance, so bulls need to aware of that.

I see long trades as the best opportunity as the price clearly has some room left to rise, and the new support at 0.9943 is quite confluent with the broken trend line. Therefore, I would be happy to take a long bias if we get a solid bounce there later. The problem is that due to the U.S. holiday this needs to happen quickly, during the first half of the London session, and it may not. USDCHFThere is nothing of high importance due today regarding the CHF. It is a public holiday today in the U.S.A.

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