USD/CHF Forex Signal – 09 October 2018

By Adam Lemon

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

Today’s USD/CHF Signals

Risk 0.75%.

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

Short Trades

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

— 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

— Go long following a bullish price action reversal upon the next touch of 0.9865.

— 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 didn’t really make any judgment on this pair yesterday. The action has been quite flat, but it is becoming notable how the medium-term bullish movement is holding and not making any significant retracement. The Swiss Franc tends to be manipulated heavily by the Swiss National Bank, which is a reason why I usually dislike trading this pair, but the outlook does look firmer here than it usually does, with quite a bullish picture showing in the price chart below, which matches the short-term price action, so I think we are more likely than not to see higher prices today. However, as we get closer to the parity level at 1.000, the more likely a meaningful bearish reversal will become.

There is nothing important due today concerning either the CHF or the USD.

This article provided by NewsEdge.