USD/CAD Forex Signal - 14 June 2017

14 June 2017 7:18:42 AM

By: DailyForex.com

Yesterday’s signals were not triggered as the price came just a pip or short of reaching the anticipated support level at 1.3210.

Today’s USD/CAD Signals

Risk 0.50% per trade.

Trades must be taken between 8am London time and 5pm New York time today only. 

Protect any open trade by 6:30pm.

Long Trades

  • Long entry after the next bullish price action rejection following a first touch of 1.3210 or 1.3164.
  • 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 Trades

  • Short entry after the next bearish price action rejection following a first touch of 1.3312 or 1.3373.
  • 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 strong fall sparked by comments from the Bank of Canada increasing the likelihood of a rate hike followed through yesterday as London came online, but the price seems to have bottomed out just a pip or so above the expected support at 1.3210. If the price spends a little longer basing here then rejects the level and begins to rise strongly, it could be a profitable, though risky, long trade. As this pair is not in a long-term trend and tends to range, a rise over the coming days would not be a surprising development.

Of course, there is a major FOMC release due later, and this could have the effect of pushing the price almost anywhere.USDCAD

There is nothing due today concerning the CAD. Regarding the USD, there will be a release of CPI and Retail Sales data at 1:30pm London time, followed by Crude Oil Inventories at 3:30pm. Finally, we will get the FOMC Statement, Federal Funds Rate, and Economic Projections at 7pm with the usual Press Conference half an hour later.

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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