USD/CAD Forex Signal - 21 February 2018

Wednesday, 21 February 2018 8:29

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 today only.

Long Trades

  • Long entry after the next bullish price action rejection following the next touch of 1.2605 or 1.2530.

  • 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

  • Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2697 or 1.2785.

  • 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

Yesterday I wrote that the signs are pointing at further short-term upwards movement, with additional potential minor support at about 1.2550. This was a correct forecast, as the price has moved up here slowly but firmly. There is no change to the technical situation, except it could be said the picture is a little more bullish. The price is close to key resistance at 1.2697, and a sustained break up above that level would be a sign of increasing bullishness. There is no long-term trend.USDCAD

There is nothing due today concerning the CAD. Regarding the USD, there will be a release of FOMC Meeting Minutes at 7pm 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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