USD/CAD Forex Signal - 5 May 2016

USD/CAD Signal Update

Yesterday’s signals were not triggered as there was no bearish price action at 1.2750.

Today’s USD/CAD Signals

Risk 0.75% per trade.

Trades may only be taken from 8am until 5pm New York time today.

 

Long Trades

Long entry after bullish price action on the H1 time frame following the next touch of 1.2750 or 1.2700.

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 Trades

Short entry after bearish price action on the H1 time frame following the next touch of 1.2919 or 1.3005.

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

Yesterday saw a continuation of the very strong move upwards by this pair. The price broke up to 1.2750 and used this level as a supportive launching pad to start another leg up. However late in yesterday’s New York session, the price appears to have turned down, although it still looks reactive rather than impulsive. The real test will be if and when the price gets close to 1.2750.

USDCAD

There are no high-impact events due today concerning the CAD, it is a public holiday in Switzerland. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm 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.