USD/CAD Forex Signal - 16 January 2017

USD/CAD Signal Update

Last Thursday’s signals were not triggered as the bullish action took place a little below 1.3051.

Today’s USD/CAD Signals

Risk 0.50% per trade.

Trades may only be taken between 8am and 5pm New York time today.

 

Long Trade 1

  • Long entry after the next bullish price action rejection following a first touch of 1.3031.

  • 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 1.3161.

  • 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

Despite the mild strength of the U.S. Dollar since this week has opened, this pair is struggling to rise and looks firmly capped at 1.3161. This suggests that the best opportunity which may arise here soon would be a short trade upon a bearish reversal rejecting that level. Below, the 1.3000 are is probably going to continue to be key psychologically and if it breaks down, any trace of the long-term bullish trend will be well and truly finished.USDCAD

There is nothing due today regarding the CAD or the USD. It is a public holiday in the U.S.A.

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.