USD/CAD Forex Signal - 16 March 2017

Yesterday’s signals were not triggered as there was no bullish price action at either 1.3423 or 1.3356.

Today’s USD/CAD Signals

Risk 0.75% per trade.

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

 

Long Trade 1

  • Long entry after the next bullish price action rejection following a first touch of 1.3210.

  • 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 entry into the zone between 1.3399 and 1.3423.

  • 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.

 

The best method to identify a classic “price action reversal” is for an hourly candle to close, such as a pin bar, a doji, an outside or even just an engulfing candle with a higher close. You can exploit these levels or zones by watching the price action that occurs at the given levels.

USD/CAD Analysis

This pair went through a reasonably sharp fall as the USD sold off, but the CAD has been one of the weakest currencies for a while as Crude Oil has continued to drop which tends to lead its value. This means that a bullish recovery looks more likely here than in most other currency pairs. However, the price now is in a no-man’s land, quite far from either key support or resistance, so the short-term twists and turns may be very unpredictable for a while.USDCAD

There is nothing due today regarding the CAD. Concerning the USD, there will be releases of Building Permits, Philly Fed Manufacturing Index, and Unemployment Claims data at 12:30pm 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.