USD/CAD Forex Signal

Yesterday’s signals were not triggered as there was no suitable price action at the key levels which were reached. The pin candlestick a 1.3327 was too small.

Today’s USD/CAD Signals

Risk 0.75% per trade.

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

Short Trade

  • Short entry after the next bearish price action rejection following the next touch of 1.3383.
  • Place 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 ride.

Long Trade

  • Long entry after the next bullish price action rejection following the next touch of 1.3183.
  • Place 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 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 yesterday that I would be bullish if the price broke above 1.3327 for a couple of hours; or if it failed there decisively and produced a double top, I would be bearish. I saw 1.3327 as the likely pivotal level of the day. This initially appeared to be the case, but I was wrong. The price has moved quite erratically now invalidated nearby levels, leaving us with a mess within a wide range where it looks as if anything might happen now. The best that can be said is that there may be some support at about 1.3240.

For this reason, I see no opportunity here, and would avoid trading this currency pair today.

USDCAD

There is nothing important due today concerning the  CAD. Regarding the USD, there will be a release of the FOMC Meeting Minutes at 7pm 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.