USD/CAD Forex Signal

11 October 2017 7:30:40 AM

Yesterday’s signals were not triggered, as the price action at 1.2486 was insufficiently bullish, although the level held very accurately as resistance.

Today’s USD/CAD Signals

Risk 0.50% per trade.

Trades must be entered before 5pm New York time today.

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

I wrote yesterday that the support at 1.2486 looked very solid, supporting my long bias. This was a good approach as after falling to reach the level, it turned around slowly but surely and rose from there. The chart below shows how the supportive trend line can be re-adjusted a little to fit what are now the two most dominant swing low points. There is a nice confluence of support here at 1.2486 and although there is major USD data due later which might push the price anywhere, there is no reason to abandon my long bias yet, as the technical picture suggests higher prices are still to be made, and the price is currently at the lower end of the bullish channel.USDCaD

There is nothing significant due today concerning the CAD. Regarding the USD, there will be a release of the FOMC Meeting Minutes at 7pm London time.

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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