USD/CAD Forex Signal - 20 September 2016

USD/CAD Signal Update

Yesterday’s signals gave a nicely profitable long trade from the support level at 1.3138 following the break of the bullish inside candle on the hourly chart. It might well have further to run but it might be a good idea to take some partial profits now as the move up seems to have slowed down.

Today’s USD/CAD Signals

Risk 0.75% per trade.

Trades may only be taken before 5pm New York time today.

 

Long Trades

  • Go long after bullish price action on the H1 time frame following the next touch of 1.3138 or 1.3100.

  • 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 1.3241.

  • 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

There has been no big change since yesterday, the only key event is that the support level at 1.3138 has held and the price continues to look bullish and threatens to break out of its long-term range.

The resistance level at 1.3241 is very key. A break above there would be a very bullish sign and could see the price reach 1.3400 quite quickly as there are no more key resistance levels until that number.

USDCAD

Regarding the USD, there will be a release of Building Permits data at 1:30pm London time. Concerning the CAD, the Governor of the Bank of Canada will be speaking at 5:50pm.

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.