USD/CAD Forex Signal

Wednesday, 31 January 2018 8:41

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 must be entered before 5pm New York time.

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

I was wrong yesterday in thinking that this pair was likely to reach 1.2400 over the next couple of days. The price turned bearish at 1.2380 and is now near the bottom of its recent range after falling further. It is likely the best opportunities today will be in other currency pairs, and not here. I do not see any true change from yesterday’s technical situation. As there is major news due from the U.S. later, the price could go anywhere during the second half of the New York session. Fading spikes to key levels would seem to be a good strategy for this pair in its current technical environment.USDCAD

Regarding the CAD, there will be a release of GDP data at 1:30pm London time. Concerning the USD, there will be a release of the ADP Non-Farm Employment Change at 1:15pm, followed by Crude Oil Inventories at 3:30pm, and the FOMC Statement and Federal Funds Rate at 7pm.

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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