USD/CAD Forex Signal - 7 June 2016

USD/CAD Signal Update

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

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

  • Go long 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

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

  • 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

Close to the London open yesterday the CAD was looking the weakest of all currencies against the USD in the short term. That situation turned around quickly, with the CAD being the strongest of all currencies over the day and this pair falling sharply and breaking down past support levels.

The bearish structure remains intact, so some follow-through downwards today looks very likely.

The next big test will be which level is broken next: 1.2750 or 1.2880. If 1.2750 is reached soon, there is likely to be a strong bounce there.

USDCAD

 There is nothing due today concerning either the CAD or the USD.

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.