USD/CAD Forex Signal - 21 October 2015

USD/CAD Signal Update

Yesterday’s signals produced a profitable long trade after the bullish engulfing bar break following the bullish reversal at the forecast support level of 1.2946. The trade is still open with partial profits booked and it looks like it could be a good runner to leave open. Further partial profits might be taken at around 1.3050 and above.

Today’s USD/CAD Signals

Risk 0.75% per trade.

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

 

Long Trade 1

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2946.

  • 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.

  • Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.

 

Long Trade 2

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.2800.

  • 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.

  • Remove 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 1

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3064.

  • 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.

  • Remove 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.

 

Short Trade 2

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3128.

  • 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.

  • Remove 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.

USD/CAD Analysis

This pair rose very strongly yesterday with real momentum, before falling quite sharply at about 1.3050, not far from the anticipated resistance at 1.3064.

It is hard to say what is going to happen with this pair, I think overall it is going to be choppy but with wide swings. The good news is that in this condition, trading at the identified support and resistance levels – or at turns quite close to them – is probably going to be a profitable trading tactic.

USDCAD

There are no high-impact releases due today concerning the USD. Regarding the USD, there will be releases of the Bank of Canada’s Monetary Policy Report, Rate Statement, and Overnight Rate at 3pm London time, followed about an hour later by the usual press conference.

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.