USD/CAD Forex Signal - 14 February 2018

Wednesday, 14 February 2018 8:32

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 between 8am London time and 5pm New York time today only.

Long Trade

  • Go long after the next bullish price action rejection following the next touch of 1.2487.

  • 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 Trade

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2698.

  • 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 wrote yesterday that this pair is very flat and waterlogged, neither bullish nor bearish, and quite far from any key levels. As such, it would probably not be a worthwhile currency pair to trade. This was a correct approach; the price chart below shows that the price has barely moved over the past 24 hours. The key U.S. Dollar data due later will probably cause some movement, but there is no trend at all here now, so this pair is again probably best avoided today.
USDCAD

There is nothing due today concerning the CAD. Regarding the USD, there will be releases of CPI and Retail Sales data at 1:30pm London time.

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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