(MENAFN- Daily Forex) USDCHF Analysis: Consolidation likely
Last Thursday's signalsproduced a profitable long trade from the bullish bounce at the support level of 0.9820. It would probably be wise to close out the remainder of any floating profit now.
Today's USD/CHF Signals
Risk 0.50%.
Trades must be entered between 8am and 5pm London time today only.
Short Trade Idea
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Go short following a bearish price action reversal upon the next touch of 0.9933.
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Put the stop loss 1 pip above the local swing high.
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Move the stop loss to break even once the trade is 20 pips in profit.
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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
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Go long following a bullish price action reversal upon the next touch of 0.9853.
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Put the stop loss 1 pip below the local swing low.
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Move the stop loss to break even once the trade is 20 pips in profit.
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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.
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USD/CHF Analysis
I wrote last Thursday that due to the prevailing ranging behaviour in this currency pair,
I would again avoid trading this pair but if I had to, I would look for a long trade entry at bullish price action when either 0.9800 or 0.9774 were reached. This wasn't a bad call as although I was wrong about the precise level, I was correct about the more probable directional movement: upwards.
The price is now looking weakly bullish but is halfway between the nearest support and resistance levels. It therefore seems we are going to have a range within a range, i.e. consolidation within this area. It is a Monday with no major news scheduled and that is another reason why we are unlikely to get much directional movement today. I see this pair as best avoided by traders right now. 
There is nothing of high importance due today concerning either the CHF or the USD.
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