USD/CAD Forex Signal - 2 January 2019

Last Thursday’s signals were not triggered, as there was insufficiently bearish price action when 1.3650 was reached.

Today’s USD/CAD Signals

Risk 0.75% per trade.

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

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 Thursday that it seemed that the bullish move may be running out of momentum, but the odds were still with the bulls as we had a clear long-term bullish trend here. I was ready to be bullish after a strong bounce at 1.3565. The price never fell back that far, but this was a good call as the price did rise a little further but ran out of momentum in the 1.3650 area. The price is now finally making a deeper retracement and looks quite likely to hit the support level at 1.3565 soon. A strong bullish bounce here could be a long trade opportunity. A break below the next lower support level at 1.3529 would be a bearish sign that this bullish trend may be over or at least taking a break from it. The USD is generally weak, so it seems the Canadian Dollar may have found a floor. I would be bearish below 1.3529 and bullish if there is a strong bounce at either of the support levels here later.

USDCAD

There is nothing of high importance 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.