USD/CAD Forex Signal

11 January 2017 9:29:20 AM

By: DailyForex.com

USD/CAD Signal Update

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

Today’s USD/CAD Signals

Risk 0.50% per trade.

Trades may only be taken before 5pm New York time today.

 

Long Trades

  • Long entry after the next bullish price action rejection following a first touch of 1.3189 or 1.3152.

  • Place 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.

  • Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.

 

Short Trades

  • Short entry after the next bearish price action rejection following a first touch of 1.3316 or 1.3398.

  • Place 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.

  • Take off 50% of the position as profit when the trade is 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/CAD Analysis

The technical situation is basically unchanged, with the price sitting on a floor of support at 1.3189. However, it is looking increasingly as if the floor will be broken, as the action has a slightly bearish pattern and does not look as if it is about to rise. This is a tough call but in any case, if the floor is broken a strong downwards move should be expected. It would mean the end of the long-term bullish trend which is still barely in force.USDCAD

There is nothing due today regarding the CAD. Concerning the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time.

Adam is a Forex trader who has worked within financial markets for over 12 years, including 6 years with Merrill Lynch. He is certified in Fund Management and Investment Management by the U.K. Chartered Institute for Securities & Investment. Learn more from Adam in his free lessons at FX Academy.

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