USD/CAD Forex Signal

Tuesday, 16 January 2018 8:04

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

Today’s USD/CAD Signals

Risk 0.50% per trade.

Trades must be entered between 8am London time and 5pm New York time over the next 24 hours only.

Long Trade

  • Go long after the next bullish price action rejection following the next touch of 1.2314.

  • 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

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2440, 1.2475, or 1.2495.

  • 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 price reaches 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

The picture is just a little more bearish than it was this time yesterday, with the price continuing to move down gently and forming a new lower resistance level at 1.2440, which is shown in the chart below There is no long-term trend, and the Canadian Dollar is not prominent in the market right now, but there may still be a good short trade opportunity at a retracement to at least 1.2475 as this area is also confluent with a major round number at 1.2500. Using the level at 1.2440 is also possible, but at present that looks a little too risky. If the level holds for several hours, it should get stronger.

I have no directional bias. It also has to be noted there is clear buying whenever the price gets to or below 1.2400, which could easily produce medium-term double bottom formations that drive the price up.

USDCAD

There is nothing important 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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