USD/CAD Forex Signal - 24 July 2017

Last Thursday’s signals were not triggered as there was no bullish price action at 1.2565.

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 1.2500 or 1.2472.
  • 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 Trade 1

  • Go short after the next bearish price action rejection following a first touch of 1.2570.
  • 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

The strong downwards trend continues, with the price action giving us no hint that it is coming to an end. The price continues to make new long-term lows and only quite shallow retracements. Therefore, the best opportunity is likely to be a short trade following a retracement to and rejection of the new resistance level at 1.2570. It would be wise to be extremely careful before taking any long trades at all, and waiting until there is a very strong bullish double bottom at one of the key support levels nearby. There is a cluster of such levels at 1.2500 and below.

USDCAD

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

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.