USD/CHF Forex Signal - Tuesday, September 10

USDCHF Analysis: Bullish above 0.9946

Yesterday’s signals were not triggered, as neither of the key levels were reached yesterday.

Today’s USD/CHF Signals

Risk 0.50%.

Trades may only be taken prior to 5pm London time today.

Short Trade Idea

Short entry following a bearish price action reversal upon the next touch of 0.9933 or 0.9946.
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 price reaches 20 pips in profit and leave the remainder of the position to ride.

Long Trade Idea

Long entry following a bullish price action reversal upon the next touch of 0.9914, 0.9894, or 0.9853.
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 price reaches 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

I wrote yesterday that the price was looking weakly bullish but was halfway between the nearest support and resistance levels. It, therefore, seemed we were going to have a range within a range, i.e. consolidation within this area. This was not a good call as the price actually rose quite firmly, printing new higher support levels, and is now threatening a very significant area of resistance between 0.9933 and 0.9946. If the price can get established above 0.9946 it will be a bullish sign, and the price has quite a lot of room to rise higher – but watch out for the major round number at 1.0000.

The bullishness here is driven more by weakness in the CHF as safe havens sell-off than USD strength.

I would take a bullish bias today if we get 2 consecutive hourly closes above 0.9946.

(Click on image to enlarge)

USDCHF