USD/CAD Forex Signal - 10 October 2016

Today’s USD/CAD Signals

Risk 0.75% per trade.

Trades may only be taken from 8am London time until 5pm New York time today.

 

Long Trades

  • Long entry after bullish price action on the H1 time frame following the next touch of 1.3193 or 1.3140.

  • 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 Trade 1

  • Go short after bearish price action on the H1 time frame following the next touch of 1.3400.

  • 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

I have been writing over recent weeks that this pair could start to look very bullish once the resistance at 1.3241 was taken out. This has happened and there is a supportive trend line, and we are seeing the price trade generally higher. We are entering “blue sky” with 7 month high prices being made.

For these reasons things look ripe for long trades, but the price seems rather muted this morning. Over the last couple of weeks Canadian economic data releases have generally been better than expected, which makes a bullish take-off less likely.

However, if something happens to either side of this pair to support an upwards movement, we could see a swift move to 1.3400 at least.

There is a support level at 1.3234 but I think it is starting to look a little shaky so I would not want to look for a long here yet.USDCAD

There is nothing due today regarding either the CAD or the USD. It is a public holiday in both the United States and Canada today.

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.