USD/CAD Forex Signal - 4 March 2015

Adam Lemon

USD/CAD Signal Update

Last Monday’s signals were not triggered as although the price did reach 1.2538, there was initially an hourly close well above that level.

Today’s USD/CAD Signals

Risk 0.75% per trade.

Trades may only be entered between 10:30am and 5pm New York time today.

 

Short Trade 1

  • Go short after bearish price action on the H1 time frame immediately following the next touch of 1.2554.

  • 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 ride.

 

Short Trade 2

  • Go short after bearish price action on the H1 time frame immediately following the next touch of the bearish trend line which currently sites at around 1.2608. If the rejected bullish thrust is also reversing off the 1.2650 level, this will be even better.

  • 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 ride.

 

Long Trade 1

  • Go long after bullish price action on the H1 time frame immediately following the next touch of the bullish trend line which currently sites at around 1.2393.

  • 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 ride

USD/CAD Analysis

We remain within the consolidating triangle that I identified last Monday, with resistance holding at the 1.2538 – 50 area. The positive CAD data released yesterday pushed this pair down but it has been bullish during today’s London session so far. However the moment of truth is going to come later with some very important CAD data coming out shortly after New York opens.

This data may create a breakout above 1.2550 in line with the longer-term trend, or a spike down to support which could then turn around, also giving a possible entry in line with the long-term trend.

A sustained break below 1.2390 later will be a very bearish sign for this pair and we would then probably see a move down to the area of 1.2100.

USDCAD 3415

There are no high-impact events scheduled for both the CAD and the USD today. Regarding the USD, the ADP Non-Farm Employment Change will be released at 1:15pm London time, followed later by ISM Non-Manufacturing PMI data at 3pm. Also at 3pm very important CAD data will be released: the Bank of Canada Rate and Rate Statement. The first half of today’s New York session is going to be very important for this pair.

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.
Learn more from Adam in his free lessons at FX Academy

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