USD/CHF Forex Signal

18 May 2017 7:47:36 AM

By: DailyForex.com

Yesterday’s signals were not triggered as the bullish price action as the bullish price action at 0.9788 did not take place until after the end of the specified session.

Today’s USD/CHF Signals

Risk 0.75% per trade.

Trades must be taken before 5pm London time today only.

Short Trades

  • Go short after bearish price action on the H1 time frame following the next touch of 0.9812, 0.9847, or 0.9900.
  • 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 trade is 20 pips in profit and leave the remainder of the position to ride.

Long Trade 1

  • Go long after bullish price action on the H1 time frame following the next touch of 0.9694.
  • 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 trade is 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

This pair was dragged down again yesterday by the highly positively correlated EUR/USD currency pair. It easily cut through anticipated support levels which clearly look to have been flipped to become support, which is a bearish sign. The pair is now in a long-term bearish trend, making multi-month lows, but this move can probably be exploited better by trading the EUR/USD currency pair.

Recent hours have shown some signs of the U.S. Dollar recovering, and if that continues, the snap-back from the downwards over-extension could be felt more strongly in this pair than in EUR/USD.

USDCHF

Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time. There is nothing due concerning the CHF.

Adam is a Forex trader who has worked within financial markets for over 12 years, including 6 years with Merrill Lynch. He is certified in Fund Management and Investment Management by the U.K. Chartered Institute for Securities & Investment. Learn more from Adam in his free lessons at FX Academy.

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