USD/CAD Forex Signal - 18 May 2017

18 May 2017 8:02:46 AM

By: DailyForex.com

Yesterday’s signals were not triggered as neither of the key levels given were ever reached.

Today’s USD/CAD Signals

Risk 0.50% per trade.

Trades must be entered before 5pm New York time today. 

Long Trade 1

  • Go long after the next bullish price action rejection following a first touch of 1.3521.
  • 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

  • Go short after the next bearish price action rejection following a first touch of 1.3671.
  • 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

The price is ranging in between key levels, and despite the large market movements we have seen over recent days, it really is not going anywhere. This strongly suggests that today’s opportunities will be in other Forex currency pairs, and not here. Technically, a possible short trade from 1.3671 which also rejects the trend line shown in the chart below would be the most attractive outcome here.

USDCAD

Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time. There is nothing due concerning the CAD.

Adam is a Forex trader who has worked within financial markets for over 12 years, including 6 years with Merrill Lynch. He is certified in Fund Management and Investment Management by the U.K. Chartered Institute for Securities & Investment. Learn more from Adam in his free lessons at FX Academy.

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