USD/CAD Forex Signal - 25 April 2017

Yesterday’s signals were not triggered as there was no bullish price action when the price reached 1.3454.

 

Today’s USD/CAD Signals

Risk 0.75% per trade.

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

 

Long Trades

* Long entry after the next bullish price action rejection following a first touch of 1.3454 or 1.3521.

* 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 Trade 1

* Go short after the next bearish price action rejection following a first touch of 1.3588.

* 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 is becoming interesting. It is very bullish, one of the most clearly trending currency pairs in the market. In recent hours, it has made a near 4-month high price. It is more a case of Canadian Dollar weakness than strength in the U.S. Dollar. The chart below shows a new, steeper bullish trend line which should be worth keeping an eye on. The price is in blue sky so picking a top would be very difficult but 1.3588 is a long-term swing high that has only been exceeded once over recent multi-month price history, so it would be a level to watch. I would be very cautious about taking any short trade.

USDCAD

There is nothing due today regarding the CAD. 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.