USDCHF Forex Signal

Yesterday’s signals were not triggered, as there was no bullish price action at 0.9985.

Today’s USD/CHF Signals

Risk 0.75%.

Trades may only be entered before 5pm London time today.

Short Trade

• Go short following a bearish price action reversal upon the next touch of 0.9985.

• 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.

• Take off 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to ride.

Long Trades

• Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.9950, 0.9907, or 0.9885.

• 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.

• Take off 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

There was considerably movement in this typically quiet currency pair towards the end of last week, with the price briefly breaking up and rising beyond the psychologically key parity level at 1.0000. The price has fallen quite steadily over recent hours and is not following the general money flow in the Forex market, so it feels as if something a little strange is happening here – it might be that the SNB or other long-term buyers have stepped in to drive the price back below 1.0000 which would mean that my argument in favour of long-term short trades here could have validity, although I had thought we would not see the price back above 1.0000 again any time soon. At the time of writing, it looks as if the price is heading steadily down towards the nearest support level, which is already not far away. Therefore, I have no directional bias today.

There is nothing important due today concerning the CHF. Regarding the USD, the Chair of the Federal Reserve will be testifying on the Semi-annual Monetary Policy Report before Congress at 3pm London time.