USD/CAD Forex Signal - 14 June 2016

USD/CAD Signal Update

Yesterday’s signals were not triggered as the bullish engulfing candle rejecting the identified support level at 1.2752 did not break to the upside on the next candle so no entry was given.

Today’s USD/CAD Signals

Risk 0.75% per trade.

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

 

Long Trade 1

  • Go long after bullish price action on the H1 time frame following the next touch of 1.2752.

  • 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

  • Go short after bearish price action on the H1 time frame following the next touch of 1.3000 or 1.2880.

  • 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

The nearest support and resistance levels given in yesterday’s forecast have held very effectively over the previous 24 hours, as the chart below illustrates.

Although this pair is in a long-term downwards trend, it has shown some strong buying recently, and the price continues to move up. For this reason, I do not trust the resistance level just hit at 1.2836 to hold, but instead look to the next levels at 1.2880 and 1.3000 for possible bearish reversals.USDCAD

There is nothing due today concerning the CAD. Regarding the USD, there will be a release of Retail Sales 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.