USD/CAD Forex Signal - 20 March 2018

Adam Lemon

Yesterday’s signals produced a losing long trade entry from the bullish near-pin candlestick which rejected the support level identified at 1.3072.

Today’s USD/CAD Signals

Risk 0.75% per trade.

Trades may only be taken before 5pm New York time today.

Long Trade

  • Go long after the next bullish price action rejection following the next touch of 1.2960.

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

  • 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 trade is 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 noted yesterday that there was no resistance until 1.3200 so a continued advance was very possible, in fact it looks like the most likely outcome. My bullish bias did not do very well as after initially looking like bouncing at the new, highest support at 1.3072 the price broke down. This is a bearish sign suggesting that the recent price rise may be exhausted, as least for a while. There is still a long-term bullish trend and no clear reason to turn bearish yet, so it may be wisest to stand aside and wait for a deeper pull back to cause the beginning of a stronger rise in the price. It is again likely to be a quiet trading day as there are no important news items scheduled for either currency within this pair.

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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