Technical Analysis Free Forex Signals USD/CAD Forex Signal - 6 February 2018 USD/CAD Forex Signal - 6 February 2018 Tuesday, 6 February 2018 8:28 Share 0 Tweet 0 Pin it 0 +1 Yesterday’s signals produced an excellent, profitable long trade from the bullish engulfing candle which formed at a bounce from a retracement to the support level identified at 1.2400. It would be wise to take at least partial profit now if this has not been done already. Today’s USD/CAD Signals Risk 0.50% per trade. Trades may only be taken before 5pm New York time. Long Trade Long entry after the next bullish price action rejection following the next entry into the zone between 1.2508 and 1.2486. 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 Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2586. 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 predicted that the former support level at 1.2400 looked to have become flipped to become probable support. This was an excellent forecast. Market sentiment is giving a bullish boost to this pair, as commodities are hit hard by market selloffs, while cash flows into the U.S. Dollar as a relative safe-haven, and the Canadian Dollar is certainly a commodity currency. It is possible that the move may now have run out of steam, and the resistance level at 1.2586 was a major inflection point when last reached, so it can be expected to have an impact if the price arrives there. I have no directional bias today. There is nothing important due today regarding the USD. Concerning the CAD, there will be a release of Trade Balance data at 1:30pm London time. Currency Pairs USD/CAD Adam Lemon 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.