USD/CAD Forex Signal - 23 August 2016

USD/CAD Signal Update

Yesterday’s signals gave a losing short trade following the bearish inside candle rejecting the identified resistance level at 1.2933.

 

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 1.2812, 1.2788 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 Trades

* Go short after bearish price action on the H1 time frame following the next touch of 1.2935 or 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

It looked like this pair was going to turn bearish after it rejected the upper band of the resistance zone at 1.2933, but then the next couple of hourly candles show that the bulls fought and won the battle over this zone. However, the price eventually topped out even below the key swing high that can be seen on the left hand side of the chart below, and moved back below that zone, which has now been invalidated, although the level at 1.2935 remains intact as a “line in the sand” which is now prone to act as resistance.

This pair is now very difficult to call between 1.2935 and 1.2812 which is a large area. There may be support at around 1.2875 and 1.2850 below.

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.