USD/CAD Forex Signal - 13 December 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 may only be taken before 5pm New York time today.

Short Trade

  • Go short after the next bearish price action rejection following the next touch of 1.3464.

  • Place 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 ride.

Long Trades

  • Go long after the next bullish price action rejection following the next touch of 1.3324 or 1.3261.

  • Place 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 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 standout feature here was the cluster of resistance levels around the psychologically important level of 1.3500, which could provide an interesting short trade opportunity if reached. I had no directional bias and thought that there were likely to be better opportunities elsewhere today. This was a good call as the price fell instead of continuing its medium-term bullish trend. It is starting to look like the former bullishness has really ended and the price is sinking back into a consolidative and unpredictable area. The bulls may have one last shot which could be revealed by a strong bullish reversal at either of the two key support levels below – I would take a bullish bias later if we got a strong bounce at one of those.

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.