USD/CAD Forex Signal - 22 May 2018

Yesterday’s signals were not triggered, as there was no bullish price action at any of the support levels when they were reached.

Today’s USD/CAD Signals

Risk 0.75% per trade.

Trades may only be taken until 5pm New York time, during the next 24-hour period.

Long Trades

  • Long entry after the next bullish price action rejection following the next touch of 1.2750 or 1.2650.

  • 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 Trades

  • Go short after the next bearish price action rejection following the next touch of 1.2793, 1.2839 or 1.2914.

  • 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 that as the price was ranging sideways within a broad range, I had no directional bias. This was a good guide to the day’s action as the wide range continued, with the Canadian Dollar probably getting a boost from yesterday’s strong rise in the price of Crude Oil. I again have no directional bias, only noting that the price is now quite close to the support and major psychological level of 1.2750, so there might be a chance to get long from a bullish bounce there. I see better potential in other currency pairs today though.
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.