USD/CAD Forex Signal

Wednesday, 7 February 2018 8:27

Yesterday’s signals produced an initially profitable long trade from the bullish inside candlestick rejecting the support zone at 1.2508, yet it only made the minimum 20 pips of profit before returning to be stopped out at breakeven.

Today’s USD/CAD Signals

Risk 0.50% per trade.

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

Long Trades

  • Go long after the next bullish price action rejection following the next touch of 1.2486 or 1.2400.

  • 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

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2586.

  • 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 the price found some support at the supportive zone I identified as starting at 1.2508, but the bounce was short-lived, and the lower edge of the zone is now threatened. However, it may hold. The U.S. Dollar remains quite strong generally, so I have a slight bullish bias on this pair today, although I still expect the resistance level at 1.2586 to be strong if it is reached.

USDCAD

There is nothing due today concerning the CAD. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm 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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