USD/CHF Forex Signal – 08 October 2018

By Adam Lemon

Last Thursday’s signals were not triggered, as none of the key levels were ever reached.

Today’s USD/CHF Signals

Risk 0.75%.

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

Short Trades

— Short entry following a bearish price action reversal upon the next touch of 0.9982, or 1.0010.

— Place 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 Trade

— Long entry following a bullish price action reversal upon the next touch of 0.9865.

— Place 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.

— Take off 50% of the position as profit when the price reaches 25 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

I wrote last Thursday that there was still some bullish momentum as the U.S. Dollar remained strong, but the closer the price approached to the parity level at 1.000 the harder it would be for it to rise further, probably. This was a good call as the price has risen a little since then but is broadly remaining flat. It is always difficult to forecast movements in this currency pair, and right now it looks particularly difficult, so I still have no directional bias here today, beyond saying that the short-term price action looks slightly bearish.

There is nothing important due today concerning either the CHF or the USD. It is a public holiday today in the USA.

This article provided by NewsEdge.