USD/CAD Forex Signal - 22 September 2016

USD/CAD Signal Update

Yesterday’s signals produced a profitable long trade from the bullish engulfing candle on the H1 chart rejecting the identified support level of 1.3138. However, the trade only made the minimum 20 pips of profit before turning around and stopping out.

Today’s USD/CAD Signals

Risk 0.75% per trade.

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

 

Long Trades

  • Long entry after bullish price action on the H1 time frame following the next touch of 1.2998 or 1.2937.

  • 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

  • Short entry after bearish price action on the H1 time frame following the next touch of 1.3100 or 1.3138.

  • 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 dovish FOMC release has had the effect of both weakening the USD and also boosting stocks and crude oil, the combination of which has caused this pair to fall quite heavily and putting an end to any possibility of a real long-term trend developing in a bullish direction.

The price may stabilise for a while but will probably fall further, at least to 1.3000 and quite possibly beyond thatUSDCAD

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