USD/CAD Forex Signal - 2 December 2015

USD/CAD Signal Update

Yesterday’s signals expired without being triggered as the price did not quite reach 1.3300.

 

Today’s USD/CAD Signals

Risk 0.75% per trade.

Trades may only be taken between 8am London and 5pm New York times today.

 

Long Trade 1

* Long entry following a bullish price action reversal on the H1 time frame immediately upon the next touch of the supportive bullish trend line currently sitting at around 1.3305.

* 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.

* 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 1

* Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3457.

* 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 trade is 20 pips in profit and leave the remainder of the position to run.

 

USD/CAD Analysis

A look at the chart below shows that although the bullish trend is quite weak, it is there. Poor Canadian economic data made this pair spike up, and although it initially fell following the spike the price has more or less held up. This indicates that if the USD really starts to strengthen greatly it should be manifested by a stronger upwards move in this pair.

Unfortunately I still do not see any really good resistance before 1.3457 but yesterday’s high of 1.3393 may be respected, give or take a few pips.

USDCAD

Regarding the CAD, there will be a release of the Bank of Canada’s Rate Statement and Overnight Rate at 3pm London time. Concerning the USD, there will be a release of the ADP Non-Farm Employment Change at 1:15pm. Later at 5:25pm the Chair of the Fed 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.