USD/CHF Forex Signal – 02 October 2018

By Adam Lemon

Last Thursday’s signals were not triggered, as there was no bearish price action at any of the identified resistance levels.

Today’s USD/CHF Signals

Risk 0.75%.

Trades may only be taken between 8am and 5pm London time today.

Short Trades

— Short entry following a bearish price action reversal upon the next touch of 0.9856, 0.9865, 0.9904, or 0.9920.

— Put 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.

— Remove 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

— Long entry following a bullish price action reversal upon the next touch of 0.9744.

— Put 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.

— Remove 50% of the position as profit when the price reaches 25 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.

USD/CHF Analysis

I wrote last Thursday that a solid break above 0.9725 would be a very bullish sign. We got that break, and what a bullish sign it was, as the price advanced from there by over 130 pips! The major directional move of last week was in this pair, as the USD went roaring ahead on good risk sentiment. However, the market has a more risk-off feel this week, so it seems quite likely that the cluster of resistance levels near above starting at 0.9856 will hold. The longer the price fails to break above 0.9865, the more likely there will be a retracement next down to at least the 0.9800 area.

Regarding the USD, the Chair of the Federal Reserve will be giving a minor speech at 3pm London time. There is nothing due today concerning the CHF.

This article provided by NewsEdge.