USD/CAD Forex Signal - 18 February 2016

USD/CAD Signal Update

Yesterday’s signals were not triggered as we did not really get good enough bullish price action when the price reached 1.3675.

 

Today’s USD/CAD Signals

Risk 0.75% per trade.

Trades may only be entered before 5pm New York time today.

 

Long Trade 1

* Long entry following a bullish price reversal on the H1 time frame upon the next touch of 1.3620.

* 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 ride.

 

Long Trade 2

* Long entry following a bullish price reversal on the H1 time frame upon the next touch of 1.3550.

* 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 ride.

 

Short Trade 1

* Short entry after bearish price action on the H1 time frame following a touch of 1.3750.

* 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 ride.

 

USD/CAD Analysis

We had some brief hopes yesterday that this pair was finally going to see a move up but they were quickly ended as the price broke down past support and never even made another run at 1.3900 let alone 1.4000.

We now see that the level at 1.3750 has become established as additional resistance.

It seems that the recovery in Crude Oil prices is dragging up the CAD and really it is impossible for this market to give USD strong and CAD weak at the same time. So although the price is up over several months, the bearish move just continues and really it is a good idea for this reason to be very cautious about going long. I would at least wait for one bullish bounce before looking to get long on a subsequent higher low.

USDCAD

There is nothing due today concerning the CAD. Regarding the USD, there will be releases of the Philly Fed Manufacturing Index and Unemployment Claims data at 1:30pm London time, followed later by Crude Oil Inventories at 4pm.

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.