USD/CAD Forex Signal - 23 May 2017

23 May 2017 7:48:21 AM

By: DailyForex.com

Yesterday’s signals were not triggered as none of the key levels were ever reached.

Today’s USD/CAD Signals

Risk 0.50% per trade.

Trades must be entered from 8am London time until 5pm New York time today only. 

Long Trade 1

  • Go long after the next bullish price action rejection following a first touch of 1.3454.
  • 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

I wrote yesterday that the price was likely to fall some more and it did. However, over the last hour or so as at the time of writing, it looks as if the nearby support level might be beginning to be felt, sending the price up sharply, suggesting the price will bottom out now at or near to the support at 1.3454.

There is no long-term trend and there will probably be better opportunities today elsewhere in the Forex market.USDCAD

There is nothing due today concerning either the CAD or the USD. 

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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