USD/CAD Forex Signal - 26 March 2015

USD/CAD Signal Update

Yesterday’s signal was not triggered as the price never reached 1.2544.

Today’s USD/CAD Signals

Risk 0.75% per trade.

Trades must be made between 8am London time and 5pm New York time today.

 

Short Trade 1

  • Go short after bearish price action on the H1 time frame immediately following the next test of 1.2544.

  • Place 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.

  • 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

USD/CAD Analysis

The USD is in strong retreat this morning and by default that usually means a kind of bullishness for the CAD as these two currencies are so strongly linked. If you take a look at the chart below, you can see that we have been in a slightly bullish channel for a few weeks now, but the price is currently breaking down below the supportive trend line. I would still look for a short if the price does manage to bounce back up to 1.2544, as muddying this line, especially if 1.2400 breaks down, is a very bearish sign for this pair. In fact there is a “hidden gap” all the way down to about 1.2100, so I currently see no good case for seeking a long, even though the area around 1.2400 has been supportive over the past few weeks.

USDCAD 32615

There are high-impact events scheduled today concerning both the CAD and the USD. Regarding the USD, at 12:30pm London time there will be a release of U.S. Unemployment Claims data. As for the CAD, at 1:30pm London time the Governor of the Bank of Canada will be speaking.

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.