USD/CAD Forex Signal - 10 February 2016

USD/CAD Signal Update

Yesterday’s signals were not triggered.

 

Today’s USD/CAD Signals

Risk 0.75% per trade.

Trades must be made from 8am London time until 5pm New York time today.

 

Long Trade 1

* Go long following a bullish price reversal on the H1 time frame upon the next touch of 1.3760.

* 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.

 

Long Trade 2

* Go long following a bullish price reversal on the H1 time frame upon the next touch of 1.3675.

* 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

* Go short after bearish price action on the H1 time frame following a touch of 1.3945.

* 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.

* 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

It had looked as if there was going to be a major turn following recent strongly bullish action. However the area just under 1.3950 proved to be too resistant for the price to break through, and it is currently falling from there as at the time of writing. I think a break up above that level which could be sustained would be significant. The CAD has weakness, but the problem is that in the current environment the USD is also very weak and so even if global economic fears are making Oil and CAD weak, you cannot really exploit that at the moment with this pair.

Things may change later when the Chair of the Fed will be speaking and her testimony might make the market more bullish on the USD.

USDCAD

There is nothing due today concerning the CAD. Regarding the USD, the Chair of the Federal Reserve will be testifying before Congress at 3pm London time, followed later by Crude Oil Inventories at 3:30pm.

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.