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USD/CHF Forex Signal - 27 October 2015

By Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.

USD/CHF Signal Update

Yesterday’s signals expired without being triggered.

Today’s USD/CHF Signals

Risk 0.75% per trade.

Trades may only be taken before 5pm London time today.

 

Long Trade 1

  • Go long after bullish price action on the H1 time frame following a touch of 0.9739.

  • 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 trade is 20 pips in profit and leave the remainder of the position to run.

 

Long Trade 2

  • Go long after bullish price action on the H1 time frame following a touch of 0.9648.

  • 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 trade is 20 pips in profit and leave the remainder of the position to run.

 

Short Trade 1

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 0.9900.

  • 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.

USD/CHF Analysis

The bullish momentum in this pair continued yesterday, as the price broke up above the resistance at 0.9800 and reached a level very close to 0.9840 before pulling back. It might be that 0.9800 now acts as minor support but I do not see it as a key level. There may also be minor support at 0.9750, before the stronger level at 0.9739.

The CHF is the weakest currency around right now so it is that side of the pair that is really driving things. A USD-positive FOMC tomorrow would make this the logical pair to be long of.

USDCHF

Regarding the USD, there will be a release of Core Durable Goods Orders data at 1:30pm London time, followed by CB Consumer Confidence at 3pm. There is nothing due concerning the CHF.

Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.

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