USD/CAD Forex Signal

Last Thursday’s signals were not triggered, as none of the key levels were reached during that day’s session.

Today’s USD/CAD Signals

Risk 0.75% per trade.

Trades must be taken and closed by 5pm London time today.

Short Trades

  • Go short after the next bearish price action rejection following the next touch of 1.3620 or 1.3650.
  • 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

  • Go long after the next bullish price action rejection following the next touch of 1.3563.
  • 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 last Thursday that the the odds favoured bulls and pointed to further upwards movement due to the long-term bullish trend, but the price may require a bearish retracement before it could advance beyond 1.3500. I was ready to be bullish if the price could trade above 1.3500 for a couple of hours that day. It did so, and over the past few days that has been a good and profitable call, with the price rising since then to touch 1.3600.

The odds are still in favour of the bulls, even though the price may be over-extended and require a pull-back. We have just had a short-term bullish turn, so I think the price will rise from here today at least by a few pips. I am bullish today above 1.3563.

USDCAD

There is nothing important due today concerning either the CAD or the USD.

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.