USD/CAD Forex Signal - 26 December 2018

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Last Monday’s signals were not triggered, as the price never quite reached 1.3563.

Today’s USD/CAD Signals

Risk 0.75% per trade.

Trades may only be entered between 8am New York time and 5pm London time today.

Short Trades

  • Short entry after the next bearish price action rejection following the next touch of 1.3620 or 1.3650.

  • 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 Trades

  • Long entry after the next bullish price action rejection following the next touch of 1.3565 or 1.3529.

  • 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 last Monday that the odds were still in favour of the bulls, even though the price may be over-extended and require a pull-back. I took a bullish bias above 1.3563 and this was a great call as the low of the day was just a couple of pips above that support level. Although the price is not moving by a great deal due to some USD weakness, the CAD remains very weak due to the still-falling price of Crude Oil. This pair could start to rise again later after the New York open. I would take a bullish bias after another good bounce at 1.3565.USDCAD

There is nothing important due today concerning either the CAD or the USD. It is a public holiday in Canada and the U.K., so CAD liquidity should be thin.

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.