USD/CAD Forex Signal - 8 May 2017

Last Thursday’s signals were not triggered as there was insufficiently bearish price action at 1.3734.

Today’s USD/CAD Signals

Risk 0.75% per trade.

Trades may only be entered 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 1.3588.
  • 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

  • Short entry after the next bearish price action rejection following a first touch of 1.3684 or 1.3736.
  • 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.

 

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 has emerged into a long-term bullish trend, making new 1-year high prices. However, last Friday saw a release of better than expected Canadian employment data, which prompted a sharp sell-off. The fall seems to have halted, and if it begins to rise again quickly within the next 48 hours, that will be a sign that the strong bullish trend is likely to continue. There is minor support at 1.3640, from which the price has already bounced within the previous few hours.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.