USD/CAD Forex Signal - 26 February 2018

Last Thursday’s signals were not triggered, as there was insufficiently bearish price action at 1.2697.

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 Trade

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

I wrote near the end of last week that this pair is not in any kind of long-term trend, and this situation persists, so all that can really be done here is watch the medium-term trend and key support and resistance levels. The medium-term trend has now turned bearish and we are seeing the beginning of a breakdown of a supportive area above 1.2600. A sustained break below 1.2600 would be a bearish sign, yet if it holds convincingly it might produce a long trade entry opportunity.USDCAD

There is nothing important 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.