USD/CAD Forex Signal - 20 February 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 between 8am London time 5pm New York time today.

Long Trade

  • Go long after the next bullish price action rejection following the next touch of 1.2530.

  • 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 Trade

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2697.

  • 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

Yesterday I noted that there was some convincing buying at 1.2450 and again at a step up around 1.2530. The price did follow this bullishness and held up, although trading was obviously relatively light due to yesterday’s public holiday in the U.S.A. The U.S. Dollar remains strong today, so the signs are pointing at further short-term upwards movement, with additional potential minor support at about 1.2550. There is no long-term trend to give better signs of probable directional movement.
USDCAD

There is nothing 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.