USD/CAD Forex Signal - 24 January 2019

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Yesterday’s signals were not triggered, as the bullish price action took place slightly below the support level at 1.3316 and the bearish price action at 1.3367 was too slow.

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.

Long Trades

  • Long entry after the next bullish price action rejection following the next touch of 1.3310 or 1.3284.
  • 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.

Short Trades

  • Short entry after the next bearish price action rejection following the next touch of 1.3367 or 1.3422.
  • 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.

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 I saw it as very difficult to predict movement in this pair, so I thought there were likely to be better opportunities elsewhere. I had no directional bias. This was probably a good call as the price remained stuck between support and resistance, although this might have given opportunities for quick trades with modest profit targets.

The picture now seems to be more bullish and it looks likely that the resistance level at 1.3367 which held yesterday is going to be today’s pivotal level. I would take a bullish bias here if the price can break above that level strongly and trade there for a couple of hours.

usdcad

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

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.