Technical Analysis Free Forex Signals USD/CAD Forex Signal - 22 January 2018 USD/CAD Forex Signal - 22 January 2018 Monday, 22 January 2018 9:41 Share 0 Tweet 0 Pin it 0 +1 Last Thursday’s signals produced a profitable short trade from the bearish rejection of the resistance level identified at 1.2475, although it only gave about 30 pips of profit. Today’s USD/CAD Signals Risk 0.50% per trade. Trades may only be taken before 5pm New York time, over the next 24-hour period. Long Trade Long entry after the next bullish price action rejection following the next touch of 1.2471. 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 Trades Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2508, or 1.2586. 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 wrote last Thursday that if the price would get established above the key psychological level at 1.2500, that would be a bullish sign. Although the price broke through the old resistance levels confluent with that number and briefly rose above it, the price has failed to remain up there, which could be concerning for any bulls. It has also become obvious there is new resistance at 1.2508, even though there is new higher support below at 1.2471. It is difficult to say what is most likely to happen next. There is no trend, so the levels will probably remain very significant. The only other development to note is the way the round number at 1.2400 has started to look like a very solid price floor, with an “over and under” bullish pattern based upon that level having pushed the price up. I have no directional bias on this currency pair. There is nothing important due today concerning either the CAD or the USD. 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.