USD/CAD Forex Signal - 20 December 2017

By: DailyForex.com

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

 

Today’s USD/CAD Signals

Risk 0.75% per trade.

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

 

Long Trades

· Go long after the next bullish price action rejection following the next entry into the zone between 1.2802 and 1.2785, or the next entry into the zone between 1.2746 and 1.2723.

· 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.

 

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

I was correct yesterday in forecasting that a strong breakout beyond 1.2900 was still more likely to happen later in the week than today. We have seen the price again test the level before moving back down into a price zone in which has spent a lot of time during recent days, between 1.2840 and 1.2880. There is no change to the technical picture: a consolidation / bullish flag pattern within an uptrend. A strong break above 1.2900 should see a movement up to 1.3000, but a break below 1.2840 should see the price make 1.2800 quickly.

USDCAD

 

There is nothing important due today concerning the CAD. Regarding 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.