USD/CAD Forex Signal - 5 February 2018

Monday, 5 February 2018 8:57

Last Thursday’s signals were not triggered, as none of the key price levels were reached that day.

Today’s USD/CAD Signals

Risk 0.50% per trade.

Trades must be entered between 8am London time and 5pm New York time.

Long Trade

  • Go long after the next bullish price action rejection following the next entry into the zone between 1.2400 and 1.2380.

  • 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

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2508.

  • 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

The technical situation changed significantly last Friday on the back of strong U.S. earnings data, with the price taking off and breaking up past the medium-term bearish trend line shown in the chart below. The strong bullish movement also broke key resistance at 1.2400, and this area now looks to have become flipped to become probable support. The price looks bearish over the long-term, yet looks most likely to continue its rise over the short term. The zone around 1.2400 looks likely to act as support.
USDCAD

There is nothing important due today regarding the CAD. Concerning the USD, there will be a release of ISM Non-Manufacturing PMI data at 3pm 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.

DailyForex Newsletter
0 User Reviews

Registration is required to ensure the security of our users. Login via Facebook to share your comment with your friends, or register for DailyForex to post comments quickly and safely whenever you have something to say.

Log in | Create a DailyForex.com Account Now