USD/CAD Forex Signal

Yesterday’s signals were not triggered, as neither of the key levels were reached during the specified time.

Today’s USD/CAD Signals

Risk 0.50% per trade.

Trades may only be taken until 5pm New York time today.

Long Trades

• Long entry after the next bullish price action rejection following the next touch of 1.2400 or 1.2380.

• Put 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 Trade

• Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2551.

• Put 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 price reaches 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 this pair is very flat and waterlogged, neither bullish nor bearish, and quite far from any key levels. As such, it would probably not be a worthwhile currency pair to trade. This was a correct approach; the price chart below shows that the price has barely moved over the past 24 hours. The key U.S. Dollar data due later will probably cause some movement, but there is no trend at all here now, so this pair is again probably best avoided today.

There is nothing due today concerning the CAD. Regarding the USD, there will be a release of PPI data at 1:30pm London time.