Technical Analysis Free Forex Signals USD/CAD Forex Signal - 18 January 2018 USD/CAD Forex Signal - 18 January 2018 Thursday, 18 January 2018 11:48 Share 0 Tweet 0 Pin it 0 Yesterday’s signals were probably not triggered, although a short trade could maybe have been taken following the bearish inside candle which would have produced some positive pips. 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 1.2475, 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 Yesterday, I expected that the best strategy would have been a reversal from a key level after a price spike, the further away, the better, following the Bank of Canada’s monthly input. This strategy would have worked reasonably well, as can be seen from the price chart below, as there was not even a single hourly close beyond the resistance levels. The Bank of Canada hiked rates by 0.25%, which was not a major surprise, and the market has digested it as a “soft hike”, so it has seemed to strengthen the Canadian Dollar here by a little, but not by a great deal. I have a mildly bearish bias, and the price chart suggests that the price is more likely to move down than up over the short term. However, if the price does turn bullish and get established above the key psychological level at 1.2500, that would be a bullish sign.There is nothing important due today concerning the CAD. Regarding the USD, there will be a release of Building Permits data at 1:30pm London time, followed by Crude Oil Inventories at 4pm. Currency Pairs USD/CAD Adam Lemon 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.