USD/CAD Forex Signal - 7 May 2018

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

Long Trades

  • Long entry after the next bullish price action rejection following the next touch of 1.2814 or 1.2750.

  • 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 1.2946.

  • 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 last Thursday that I was taking a very cautiously bullish bias above 1.2814, and bearish below that level. I still expected it would break down soon and that we would not see 1.2946 first. I was wrong in that expectation, or it looks as if I will be wrong as the support at 1.2814 has continued to hold, but the bias I took has been the right approach.

It is interesting that even as WTI Crude Oil is hitting new 3-year high prices, the Canadian Dollar is not making an advance against the U.S. Dollar, which suggests the U.S. Dollar is very strong right now.

I maintain my bullish bias. There is no real change to the technical picture if the price remains between 1.2814 and 1.2946.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.