USD/CAD Forex Signal - 22 December 2015

USD/CAD Signal Update

Yesterday’s signals expired without being triggered as none of the key levels were ever reached.

 

Today’s USD/CAD Signals

Risk 0.75% per trade.

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

 

Long Trade 1

* Long entry following a bullish price reversal upon the next touch of 1.3850.

* Place 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

* Short entry following a bullish price reversal upon the next touch of 1.4000.

* Place 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.

 

USD/CAD Analysis

The price made another attempt to break 1.4000 yesterday, but failed to even quite get there. This normally would signify deeper pullback is about to happen, but with volumes very thin this time of year it is hard to judge if it is meaningful.

The area just above 1.3900 has been acting as minor support but I suspect we are due another touch of 1.3850 fairly soon, which might provide a bullish reversal with a good opportunity for a long entry.

Another failure at 1.4000 would look attractive for a short-term short trade.

USDCAD

There is nothing due today concerning the CAD. Regarding the USD, there will be a release of Final GDP data at 1:30pm 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.