USD/CAD Forex Signal - 14 August 2017

Last Thursday’s signals were not triggered as neither of the key levels were ever reached.

Today’s USD/CAD Signals

Risk 0.75% per trade.

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

Long Trades

  • Go long after the next bullish price action rejection following a first touch of 1.2658 or 1.2620.
  • 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 1.2774.
  • 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 medium-term bullishness continues, indicated mainly be the printing of another, higher support level at 1.2658.  The price continues to rise and rise due primarily to a strong U.S. Dollar, but the Canadian Dollar has also been relatively weak over the short-term. This has been one of the best pairs to use to take advantage of U.S. Dollar strength. The line of least resistance is upwards, and the price looks set to continue to rise further, to at least 1.2775.USDCAD

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

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.