USD/CHF Forex Signal – 30 July 2018

By DailyForex

Last Thursday’s signals were not triggered, as unfortunately the low price of the day was just a little above the nearest support level identified at 0.9907.

Today’s USD/CHF Signals

Risk 0.75%.

Trades must be taken between 8am and 5pmLondon time today only.

Short Trades

— Short entry following a bearish price action reversal upon the next touch of 0.9978, 1.0000, or 1.0010.

— Place 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 Trades

— Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of 0.9907 or 0.9885.

— Place 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.

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 the technical picture showed a wide bearish price channel with action tending to respect key levels of support and resistance, due to which I had no directional bias, but would treat any reversal as a trade opportunity. This was a good call, as the price channel has continued to hold, and the price has continued to respect obvious inflection levels. There is no change to the picture or to my approach. We now see the price testing the resistance level at 0.9953 over the past few hours. If it continues to fail here as the London session gets under way, we will probably see a bearish reversal and a move down – this is probably going to be today’s pivotal price.

I have no directional bias and it is likely to be a quiet day in the Forex market.

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

This article provided by NewsEdge.