USD/CAD Forex Signal - 19 March 2018

Adam Lemon

Last Thursday’s signals were not triggered, as the bearish price action took place above the resistance identified at 1.3050.

Today’s USD/CAD Signals

Risk 0.75% 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 1.3072 or 1.2960.

  • 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 after the next bearish price action rejection following the next touch of 1.3200.

  • 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 trade is 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 long-term bullish trend is looking very strong now with the bullish advance we have seen here over the past several days. The sustained break above the psychologically important 1.3000 level is an important milestone and we have higher, new support established at 1.3071. There is no resistance until 1.3200 so a continued advance is very possible, in fact it looks like the most likely outcome. I have a bullish bias here although trading may be relatively quiet today, so it might be preferable to wait for tomorrow’s London open to see how the technical picture looks then.USDCAD

There is nothing due today concerning either the CAD or the USD.

Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.
Learn more from Adam in his free lessons at FX Academy

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