USD/CAD Forex Signal - 24 February 2016

USD/CAD Signal Update

Yesterday’s signals were not triggered as there was no bearish price action when the price reached the resistant trend line.

 

Today’s USD/CAD Signals

Risk 0.75% per trade.

Trades may only be taken between 8am London time and 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 1.3620.

* 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 1.3550.

* 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 1.3900.

* 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

I wrote yesterday that 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. We have an answer: the price has managed to break up above the trend line and the support at 1.3650 has also held. However it should be worthwhile to take a cautious approach. I will not look for a long off the broken short term trend line at this point, but I would like to see a major higher low made above that level before going long, ideally.

USDCAD

There is nothing due today concerning the CAD. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time.

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.