USD/CAD Forex Signal - 9 October 2017

By: DailyForex

Last Wednesday’s signals were not triggered, as none of the key levels were ever reached during the specified session.

Today’s USD/CAD Signals

Risk 0.50% per trade.

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

Long Trades

  • Go long after the next bullish price action rejection following a first touch of 1.2486, 1.2445, or 1.2415.
  • 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 1.2608.
  • 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

There is still no change yet in the technical picture, which shows a clear and consistent bullish channel. There is a reasonably clear sequence of higher lows. I have no reason to hold anything except a bullish bias, particularly as the price is nearer the lower boundary of the channel than the higher one, and a strong bullish rejection of the supportive trend line and the level at 1.2486 simultaneously could be the start of a powerful bullish move. There might be a good opportunity here today, so it is worth keeping an eye on this pair.

USD/CAD

There is nothing significant due today concerning either the CAD or the USD. It is a public holiday in the U.S.A.

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.