USD/CAD Forex Signal

17 July 2017 7:29:31 AM

Last Thursday’s signals were not triggered as none of the key levels were ever reached during that session.

Today’s USD/CAD Signals

Risk 0.75% per trade.

Trades may only be entered between 8am and 5pm London time today.

Long Trades

  • Go long after the next bullish price action rejection following a first touch of 1.2635 or 1.2696.
  • 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 ride.

Short Trades

  • Go short after the next bearish price action rejection following a first touch of 1.2774 or 1.2694.
  • 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 trade is 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.

USD/CAD Analysis

This pair stands out in the Forex market as having the strongest and most consistent trend of the more important currency pairs, in the bearish direction of course. Last Thursday I expected that a pull back to 1.2775 could provide a good short trade entry if the price turned bearish upon reaching that area. I was broadly right although the price made a high a few pips short of the 1.2775 level. Over recent hours the balance has shifted towards the bulls as the U.S. Dollar makes a small comeback. The first test of this retracement will come at 1.2684. I maintain a bearish outlook overall.USDCAD

There is nothing due today concerning either the CAD or the USD.

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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