USD/CAD Forex Signal - 27 February 2018

Tuesday, 27 February 2018 8:09

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 and 5pm New York time today only.

Long Trades

  • Go long after the next bullish price action rejection following the next touch of 1.2605 or 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 1.2785.

  • 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

I wrote yesterday that a sustained break below 1.2600 would be a bearish sign, yet if it holds convincingly it might produce a long trade entry opportunity. Although the price was never quite reached, the area did provide a catalyst for a move up, which wasn’t a surprise, although the bulls may now have run out of steam. It is not marked in the price chart below, but there is minor support valid right now at 1.2670 – watch this level carefully to see if it holds. If it holds, the price should continue to rise, if not, then a trip back to 1.2600 is more likely. There is no long-term trend in this pair so there is nothing else to go on here.USDCAD

There is nothing due today concerning the CAD. Regarding the USD, there will be a release of Core Durable Goods Orders and testimony before Congress by the Chair of the Federal Reserve at 1:30pm London time, followed by CB Consumer Confidence data at 3pm.

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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