USD/CAD Forex Signal - 31 January 2019

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Yesterday’s signals were not triggered, as there was no bullish price action at 1.3249.

Today’s USD/CAD Signals

Risk 0.75% per trade.

Trades may only be taken before 5pm New York time today.

 Long Trade

  • Long entry 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.

Short Trades

  • Short entry after the next bearish price action rejection following the next touch of 1.3207.
  • 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 it was probably best to stand aside for the time being until we hopefully got some more clarity after the FOMC, as the price seemed to be caught in an even and strong struggle between bulls and bears. In fact, it would have been great to be short right from the start of yesterday’s London session.

The FOMC release weakened the U.S. Dollar everywhere, and here was no exception. The picture is much more bearish now, and there are no key support levels below until 1.3055, so the price has plenty of room to fall further. I would therefore take a bearish bias on this pair today below 1.3115 until 1.3055.

usdcad

There is nothing of high importance due today regarding the USD. Concerning the CAD, there will be a release of GDP data at 1:30pm London time.

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.