USD/CAD Forex Signal - 18 May 2016

USD/CAD Signal Update

Yesterday’s signals were not triggered as there was no bearish price action at 1.2880.

Today’s USD/CAD Signals

Risk 0.75% per trade.

Trades must be entered between 8am and 5pm New York time today only.

 

Long Trades

  • Go long after bullish price action on the H1 time frame following the next touch of 1.2880 or 1.2750.

  • 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 the next touch of 1.3005.

  • 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

The level at 1.2880 has been confirmed, but has flipped to become a supportive launching pad instead of the resistance it looked like being this time yesterday. We have something of a double top already at around 1.2950, but with the recent USD bullishness it looks like it could be broken.

The FOMC release is approaching so it might be that the price will stabilize now. The CAD is a relatively strong currency over the long term but its short-term movements are highly positively correlated with the price of Crude Oil.

USDCAD

There are no high-impact events due today concerning the CAD. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time, followed later at 7pm by the FOMC Meeting Minutes.

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.