USD/CAD Forex Signal

Yesterday’s signals produced a short trade entry from the rejection of the resistance level at 1.3327, which would still be open and running at a small floating loss. The trade looks neither especially good or bad in terms of its progress so the outlook for it is neutral.

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.

Short Trades

  • Go short after the next bearish price action rejection following the next touch of 1.3327 or 1.3383.
  • Put 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 run.

Long Trade

  • Go long after the next bullish price action rejection following the next touch of 1.3267 or 1.3183.
  • Put 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 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 outlook was more bullish with the USD advancing everywhere, and if the price could convincingly break above 1.3264 the picture would become much more bullish, so I would take a bullish bias at that point if it happens. This was a good call as we got the break, and the price advanced all the way to the next resistance level at 1.3327. There was a bearish rejection there, but the bullish momentum seems to be coming again and the price looks likely to test that resistance level for a second time. This is likely to provide today’s decisive moment, so I will be bullish if the price breaks above 1.3327 for a couple of hours; or if fails there decisively and produces a double top, I will be bearish.

USDCAD

There is nothing important due today concerning the CAD. Regarding the USD, there will be a release of Preliminary GDP 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.