USD/CAD Forex Signal - 9 July 2019

USDCAD: Bearish trend halted at 1.3055

Yesterday’s signals were not triggered, as there was insufficiently bearish price action at 1.3093.

Today’s USD/CAD Signals

Risk 0.75% per trade.

Trades may only be entered prior to 5pm London time today.

Long Trade Ideas

• Go long after the next bullish price action rejection following the next touch of 1.3082 or 1.3055.
• 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 run.

Short Trades Ideas

• Go short after the next bearish price action rejection following the next touch of 1.3153.
• 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 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 despite the bearish picture we could be seeing the start of a major bullish reversal as the support at 1.3055 continues to hold. The price has now moved up, with the strong Canadian Dollar finally weakening against a resurgent U.S. Dollar. It looks like a medium or even long-term bullish reversal is finally in place, but movement is likely to be relatively slow and choppy. Bulls will be looking for a price to get established above 1.3164 as a confirmation of this potential reversal.

There is nothing of high importance due today regarding the CAD. Concerning the USD, the Chair of the Federal Reserve will be making a minor speech at 1:45pm London time.