USD/CAD Forex Signal - 8 February 2017

USD/CAD Signal Update

Yesterday’s signals were not triggered as there was no bearish price action when the price reached the resistance level identified at 1.3189.

Today’s USD/CAD Signals

Risk 0.75% per trade.

Trades may only be taken from 8am London time to 5pm New York time today.

Long Trade 1

  • Long entry after the next bullish price action rejection following a first touch of 1.3074.

  • 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 1.3215 or 1.3294.

  • 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

We are starting to see a comeback by the U.S. Dollar albeit in a small way. This pair is where the greenback is really making itself felt as we see a break above former resistance, as well as a flipping of former resistance to support at 1.3074. Again, the big picture shows that the area around 1.3000 is a very crucial picot in determining the path of the price over the longer term.

There is no long-term trend so I cannot put a lot of faith in the longer-term direction of the price.USDCAD

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

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.