USD/CAD Forex Signal - 9 July 2019

Adam Lemon

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.

usdcad

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.

Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.
Learn more from Adam in his free lessons at FX Academy

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