USD/CAD Forex Signal - 23 January 2018

Yesterday’s signals were not triggered, as there was no bullish price action when the price first reached 1.2471.

Today’s USD/CAD Signals

Risk 0.50% per trade.

Trades must be entered between 8am London time and 5pm New York time, during the next 24-hour period only.

Long Trade

  • Long entry after the next bullish price action rejection following the next touch of 1.2433.

  • 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.

  • 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

  • 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.

  • 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

This pair is boring right now. There is nothing of major interest going on. The price is still contained within its price movement from the first hour after the Bank of Canada hiked its interest rate last week. The former support at 1.2471 broke down but we are left with the same levels beyond that. In the current ranging environment, fading bounces from any level is more likely to be an effective trading strategy.

I have no directional bias on this currency pair.

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.