USD/CAD Forex Signal - 12 April 2018

Yesterday’s signals were not triggered, as none of the key levels were ever reached.

 

Today’s USD/CAD Signals

Risk 0.75% per trade.

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

 

Long Trade

· Long entry after the next bullish price action rejection following the next touch of 1.2530.

· Put the stop loss 1 pip below the local swing low.

· Adjust 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

· Short entry after the next bearish price action rejection following the next touch of 1.2669.

· Put the stop loss 1 pip above the local swing high.

· Adjust 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 there was every technical reason to remain bearish, especially if the new resistance at 1.2605 continued to hold. That level did not hold and was invalidated, but the bears made gains anyway, with the major movement of the day being downwards. However, the relatively bullish FOMC minutes release seems to have held up the price and looks to be preventing further strong falls so far. There is a medium-term bearish trend, but the short-term trend now is bullish, so I have no directional bias today.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.