USD/CAD Forex Signal - 21 January 2019

Last Thursday’s signals were not triggered, as none of the key levels were ever reached.

Today’s USD/CAD Signals

Risk 0.75% per trade.

Trades may only be taken from 8am London time until 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 1.3324 or 1.3367.

  • 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 last Thursday that if the price rose to 1.3325 and then made a strongly bearish reversal, I would take a bearish bias. I was right at least that the level would hold as the price has moved down a little after reaching a maximum high of 1.3319.

This pair looks awful to trade, action is completely choppy and consolidative. It is very likely to be a good idea to ignore this pair today and look for potential opportunities elsewhere.USDCADThere is nothing important due regarding either the USD or the CAD. It is a public holiday in the USA.

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.