USD/CAD Forex Signal - 10 January 2018

By: DailyForex.com

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

 

Today’s USD/CAD Signals

Risk 0.50% per trade.

Trades may only be taken before 5pm New York time today.

 

Long Trade

· Long entry after the next bullish price action rejection following the next touch of 1.2314.

· 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

· Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2513.

· 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 price reaches 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 didn’t have much to say about this pair yesterday. Earlier in the week I noted that a bullish move up to the 1.2500 area may have begun, and this is what seems to be playing out as the price has continued to move up. It looks as if there is new, albeit very minor, support at 1.2450. The action suggests that the price is now going to reach the 1.2500 area where it will face a test at the nearby resistance level. It is important psychologically, so a short trade here at a bearish rejection could provide one or two hundred pips of potential profit. Alternatively, a sustained break above 1.2515 would be a bullish sign of a further rise coming.

USDCAD

There is nothing important due today concerning the CAD. Regarding the USD, there will be a release of Crude Oil Inventories 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.