USD/CAD Forex Signal - 20 December 2016

USD/CAD Signal Update

Yesterday’s signals were not triggered as there was no bearish price action at 1.3398.

Today’s USD/CAD Signals

Risk 0.50% per trade.

Trades must be entered before 5pm London time today only.

 

Long Trade 1

  • Go long after the next bullish price action rejection following a first touch of 1.3316.

  • Put 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 Trades

  • Go short after the next bearish price action rejection following a first touch of 1.3461, 1.3477 or 1.3515.

  • Put 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 was right yesterday to see long trades as the best opportunity as the price rose strongly for another day yesterday. The price has broken up past the resistance I had seen at 1.3398 and has now flipped that to support, although I am not very optimistic that it will hold. The support at 1.3316 is a long way away but I think 1.3350 could be good for the next bounce up after a pull back.

The longer-term outlook is increasingly bullish.

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.