USD/CAD Forex Signal

Yesterday’s signals produced a losing long trade following the bullish pin candlestick which rejected the support level at 1.3251, but only made 10 pips of profit before breaking below its low.

Today’s USD/CAD Signals

Risk 0.75% per trade.

Trades must be entered before 5pm New York time today only.

Long Trade

  • Go long after the next bullish price action rejection following the next touch of 1.3251.

  • Place the stop loss 1 pip below the local swing low.

  • Adjust the stop loss to break even once the trade is 20 pips in profit.

  • Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.

Short Trades

  • Go short after the next bullish price action rejection following the next touch of 1.3324 or 1.3367.

  • Place the stop loss 1 pip above the local swing high.

  • Adjust the stop loss to break even once the trade is 20 pips in profit.

  • Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.

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 thought that 1.3274 would be today’s pivotal level, as if it held for several hours, the price was most likely to continue its rise. Having said that, I noted there was also support at the psychological level of 1.3250 which might complicate things. I was prepared to take a bearish bias if the price had broken firmly below 1.3250. This was a good call, as the break of 1.3274 did signify a further move down but only to the 1.3250 which at the time of writing is showing signs of acting as support.

The next major movement looks uncertain, the best I can say is that the psychological level at 1.3250 looks like being very pivotal today. After the USD data release later, I would follow any strong bounce off 1.3250 in either direction to determine the best direction to trade this pair, but I would want to see a short-term increase in volatility as this market here is getting quieter.USDCADThere is nothing important due regarding either the USD or the CAD.

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.