USD/CAD Forex Signal

Yesterday’s signals were not triggered, as the price did not quite reach either of the nearby levels.

Today’s USD/CAD Signals

Risk 0.75% per trade.

Trades must be taken before 5pm New York time today only.

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 Trades

  • Go long after the next bullish price action rejection following the next touch of 1.3565 or 1.3529.

  • 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 the CAD remained very weak due to the still-falling price of Crude Oil. This pair could start to rise again later after the New York open. I was prepared to take a bullish bias after another good bounce at 1.3565. This was a good call as although the price made a low just a couple of pips above the level before turning around and challenging the highs again; however, the price has not been able to exceed earlier highs yet.

It seems that the bullish move may be running out of momentum, but the odds are still with the bulls as we have a clear long-term bullish trend here. I would be bullish after a strong bounce at 1.3565 if it happens later.USDCAD

There is nothing important due today concerning the CAD. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm 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.