USD/CAD Forex Signal - 16 August 2017

Yesterday’s signals were not triggered as the price action at 1.2774 was insufficiently bearish.

Today’s USD/CAD Signals

Risk 0.75% per trade.

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

Protect any open trade by 6:30pm.

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 Trades

  • Go short after the next bearish price action rejection following a first touch of 1.2774 or 1.2839.
  • 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.  The price continues to rise healthily, 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.

There was an important development yesterday as the price hit the resistance level of 1.2774 and has not exactly reversed from there, but looks as if it may be topping out. It is most likely the price will today consolidate just under that level and then be driven by the FOMC release. If the release if very positive for the USD, we can expect a move up beyond 1.2774.

USDCAD

There is nothing due today concerning the CAD. Regarding the USD, there will be a release of Building Permits data at 1:30pm London time, followed by Crude Oil Inventories at 3:30pm and FOMC Meeting Minutes at 7pm.

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.