USD/CAD Forex Signal - 19 July 2018

Yesterday’s signals were not triggered, as none of the key levels were ever reached.

Today’s USD/CAD Signals

Risk 0.75% per trade.

Trades must be taken between 8am London time and 5pm New York time, during the next 24-hour period only.

Long Trade

  • Go long after the next bullish price action rejection following the next touch of 1.3160.

  • 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.

  • Take off 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 after the next strongly bearish price action rejection following the next touch of 1.3275.

  • 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.

  • Take off 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 the picture looked very bullish, but the price was extended and close to key resistance at 1.3275, so the moment may have passed. I was correct about that, as the price turned around and fell sharply as the U.S. Dollar started to give up its recent gains. However, the short-term picture is very bullish, as the price made a strongly bullish turn at 1.3160 a few hours ago, establishing that level as new higher support. This pair can best be described as cautiously bullish, with deep bearish pull-backs. I expect higher prices over the short term, but it is quite likely that the rise will be halted at about 1.3220 where there is minor resistance.USDCAD

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

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.