USD/CAD Forex Signal - 16 August 2016

USD/CAD Signal Update

Yesterday’s signals gave a losing long trade on the break of a bullish engulfing candle rejecting the support level identified at 1.2928.

 

Today’s USD/CAD Signals

Risk 0.75% per trade.

Trades may only be entered 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 1.2860 or 1.2752.

* 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 1.3000.

* 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 supportive area I had identified a little way above 1.2900 turned out to be disappointing and was broken quite easily. There is a clear and fairly strong short-term downwards trend in full flow and it does not look like stopping before 1.2860 at least. As so often with this pair, support and resistant prints are not exact, so you have to use some imagination to get short as the upswings fade if you want to day or swing trade this.

The price is now below its levels of both 3 months and 6 months ago so it should be called as in a long-term downwards trend.

USDCAD

Concerning the CAD, there will be a release of Manufacturing Sales data at 1:30pm London time. Regarding the USD, there will be releases of Building Permits and CPI numbers also at 1:30pm.

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.