USD/CAD Forex Signal - 30 January 2018

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 may only be taken before 5pm New York time.

Long Trade

  • Long entry after the next bullish price action rejection following the next touch of 1.2219.

  • 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 1.2400, or 1.2433.

  • 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

I wrote yesterday that this pair was looking more bullish now, as the USD began to recover a little, and it continued to gain slightly. 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. I do not see any change from yesterday’s situation.
USDCAD

Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time. There is nothing important due today concerning the CAD.

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.