USD/CAD Forex Signal - 16 April 2018

By: DailyForex.com

Last Thursday’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 may only be taken until 5pm New York time today.

 

Long Trade

* Go long after the next bullish price action rejection following the next touch of 1.2530.

* 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.

* Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.

 

Short Trade

* Go short after the next bearish price action rejection following the next touch of 1.2669.

* 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.

* Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.

 

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 last Thursday that there was a medium-term bearish trend, but the short-term trend was bullish, so I had no directional bias. Since then we see the bulls firming up somewhat, with the price making a double bottom at the 1.2560 area. There seems to be a range between there and about 1.2620, where a triple top might be forming. This is all taking place without key levels being reached, and suggests it is going to be challenging to trade this pair today. Last week’s rise in the Canadian Dollar was driven by a rise in Crude Oil, which may now have come to a halt. It is probably a good idea to stand aside from trading this pair for the time being, although the support below may hold over the medium to long term as it is close to the psychological level of 1.2500.

usdcad

There is nothing due today concerning the CAD. Regarding the USD, there will be a release of Retail Sales data at 1:30pm 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.