USD/CAD Forex Signal

Monday, 29 January 2018 8:48

Last Thursday’s signals were not triggered, as the bearish price action took place above 1.2366.

Today’s USD/CAD Signals

Risk 0.50% per trade.

Trades must be entered before 5pm New York time only.

Long Trade

  • Go long after the next bullish price action rejection following the next touch of 1.2219.

  • 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.

  • 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

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2400, or 1.2433.

  • 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.

  • 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

This pair is looking more bullish now, as the USD begins to recover a little, and it is making gains here more than it is against most other currencies. There is still a long-term bearish trend, but the price looks likely to reach 1.2400 over the next couple of days, where it will test the nearest key resistance level which is also confluent with a round number. It is likely the best opportunities today will be in other currency pairs, and not here.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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