USD/CAD Forex Signal - 27 December 2016

USD/CAD Signal Update

Last Thursday’s signals produced a small but profitable short trade off the resistance level at 1.2477 following the breakdown of a bearish inside candle on the hourly chart.

Today’s USD/CAD Signals

Risk 0.75% per trade.

Trades may only be taken between 8am and 5pm New York time today.

 

Long Trades

  • Long entry after the next bullish price action rejection following a first touch of 1.3515 or 1.3461.

  • Place 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

  • Short entry after the next bearish price action rejection following a first touch of 1.3563.

  • Place 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

This pair has become very interesting in recent days, as it shows more bullishness from the USD than any other major USD pair.

If the support at 1.3515 holds convincingly, it will be a bullish sign, and buying here could lead the Forex action as the market picks up again after the holiday.

A break below 1.3461 would be a bearish sign and call the medium-term trend into question.

There is also an existing long-term bullish trend.

USDCAD

There is nothing due today regarding the GBP, it is a public holiday in Canada. Concerning the USD, there will be a release of CB Consumer Confidence data at 3pm 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.