Technical Analysis Free Forex Signals USD/CAD Forex Signal USD/CAD Forex Signal Thursday, 20 December 2018 11:19 Share 0 Tweet 0 Pin it 0 +1 Yesterday’s signals produced a nicely profitable long trade from the bullish engulfing candlestick which rejected the support level at 1.3417, which topped out at the next resistance level at 1.3500 around the time of the New York close. It is probably worth taking most of any floating profit off the table now. Today’s USD/CAD Signals Risk 0.75% per trade. Trades must be entered before 5pm New York time today only. Short Trades Short entry after the next bearish price action rejection following the next touch of 1.3540, 1.3563, or 1.3620. Put 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 run. Long Trade Long entry after the next bullish price action rejection following the next touch of 1.3417. Put 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 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 wrote yesterday that there was a bullish bias overall, with the Canadian Dollar dragged down by sharp falls in the price of Crude Oil. However, the picture was complicated by several factors: Crude Oil was beginning to recover, at least temporarily; there was a cluster of technical resistance levels at and beyond the psychologically key level of the round number at 1.3500; and there were major data releases due for both sides of this pair. This all made the next movements likely to be volatile and unpredictable. However, the balance of probabilities should favour bulls and I would again be bullish on a strong and sustained break above 1.3500. I think this was a good call as although the price ultimately held up after initially spiking down, it has still not been able to penetrate beyond 1.3500 convincingly. I maintain my position: the odds favour bulls and point to further upwards movement due to the long-term bullish trend, but the price may require a bearish retracement before it can advance beyond 1.3500. I would be bullish if the price can trade above 1.3500 for a couple of hours today. There is nothing important due today concerning either the CAD or the USD. Currency Pairs USD/CAD Adam Lemon 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.