USD/CAD Forex Signal - 7 March 2018

Wednesday, 7 March 2018 8:22

Yesterday’s signals were not triggered, as there was no bullish price action when the price reached 1.2915.

Today’s USD/CAD Signals

Risk 0.75% per trade.

Trades must be entered before 5pm New York time today only.

Long Trade

  • Long entry after the next bullish price action rejection following the next touch of 1.2915.

  • 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

  • Short entry after the next bearish price action rejection following the next touch of 1.3050 or 1.3082.

  • 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

I wrote yesterday that I was maintaining a bullish bias, but more cautiously, due to the proximity of the round number at 1.3000 and the next key resistance level at 1.3050. I was correct to be cautious, as the price was unable to reach any higher than 1.3000, and in fact fell below the support level at 1.2915. This was a bearish sign, but the price managed to recover above the level and use it again as support, so the level is reconfirmed, leaving us with the identical technical situation as yesterday. I still have a cautious bullish bias.

USDCAD

Regarding the USD, there will be a release of the ADP Non-Farm Employment Change at 1:15pm London time, followed by Crude Oil Inventories at 3:30pm. Concerning the CAD, there will be a release of Trade Balance data at 1:30pm, followed by the Bank of Canada Rate Statement and Overnight Rate at 3pm.

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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