USD/CAD Forex Signal - 8 July 2019

Adam Lemon

USDCAD: Bearish trend halted at 1.3055?

Last Thursday’s signals produced a profitable long trade from the bullish pin candlestick which rejected the support level I had identified at 1.3054.

Today’s USD/CAD Signals

Risk 0.75% per trade.

Trades must be taken between 8am and 5pm London time today only.

Long Trade Idea

  • Long entry after the next bullish price action rejection following the next touch of 1.3054.

  • 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 ride.

Short Trades Ideas

  • Short entry after the next bearish price action rejection following the next touch of 1.3093 or 1.3153.

  • 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 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 last Thursday that despite the long-term bearish trend, the key support level at 1.3054 had held up quite firmly. I was ready to take a bearish bias at any bearish reversals at a resistance level, but that did not play out. The picture is looking more and more bearish as the key support at 1.3054 continues to hold and we could be seeing the start of a major bullish reversal. If the price does not break down, then the strong Canadian Dollar may have made a medium-term or even a long-term peak. This means another visit to the area of 1.3055 could be a big trading opportunity.
USDCADThere is nothing of high importance due today regarding the CAD or the USD.

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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