USD/CAD Forex Signal - 31 May 2016

USD/CAD Signal Update

Yesterday’s signals were not triggered.

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 Trades

  • Long entry after bullish price action on the H1 time frame following the next touch of 1.3000 or 1.2880.

  • 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.

USD/CAD Analysis

The picture is fairly confusing. The tentative support yesterday at 1.3068 has been destroyed and instead we have a new inflection at 1.3092 which has also been previously supportive so I am comfortable calling that as a resistance level. Therefore we are currently trapped between that and the support at 1.3000.

The longer-term bias has to be called as bullish, so the odds are probably better for longs than shorts, although in the very long-term the price is still at the lower end of a bearish range.

This is a hard pair to judge right now. We may get some more clarity later today as there is high-impact news due for both sides.

USDCAD

Concerning the CAD, there will be a release of GDP data at 1:30pm London time. 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.