USD/CAD Forex Signal - 23 February 2016

USD/CAD Signal Update

Yesterday’s signals were not triggered and expired.

 

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 the bearish trend line currently sitting at around 1.3780.

* 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.

 

Short Trade 2

* Short entry after bearish price action on the H1 time frame following a touch of the bearish trend line currently sitting at around 1.3900.

* 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

Things are starting to look interesting here after this endless, multi-week fall, in spite of the very strong rise in the price of crude oil yesterday. In the chart below we can see how the price is being compressed down by a bearish trend line that has held over the last couple of weeks or so. However the price has bottomed three times at around 1.3650 and so we may finally be starting to find some real support here.

The key development to watch out for will be whether the price manages to break up above the trend line without breaking down past 1.3650.

USDCAD

There is nothing due today concerning the CAD. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm.

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.