USD/CAD Forex Signal

Yesterday’s signals were not triggered, as neither of the key levels were reached.

Today’s USD/CAD Signals

Risk 0.75% per trade.

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

Short Trade

  • Go short after the next bearish price action rejection following the next touch of 1.3235.

  • 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

  • Go long after the next bullish price action rejection following the next touch of 1.3055.

  • 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 a pull back to 1.3183 later could provide a nice short trade entry. I took a bearish bias below that level. The price got higher than that without quite reaching my higher resistance level at 1.3235, but my bearish bias was justified as the price has continued to fall and is currently trading lower than it was twenty-four hours ago.

The picture remains bearish, but I am concerned at the extremely low volatility of recent hours. Still this may pick up as London comes online. I would take a bearish bias if we get a couple of hourly closes below yesterday’s low at 1.3160, or if there is a retracement and strong bearish reversals at either of the resistance levels above. This bearish breakdown from the price channel seems solid and likely to run further.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.