USD/CAD Forex Signal - 10 April 2019

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Last Monday’s signals were not triggered as there was no bullish price action at 1.3336.

Today’s USD/CAD Signals

Risk 0.75% per trade.

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

Long Trades

  • Long entry after the next bullish price action rejection following the next touch of 1.3241.
  • 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.

Short Trades

  • Short entry after the next bearish price action rejection following the next touch of 1.3336 or 1.3370.
  • 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.

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.

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USD/CAD Analysis

I wrote last Monday that the picture looks more bullish now although 1.3402 looked likely to be strong resistance. I was ready to take a bullish bias if the price could close above it for a couple of hours but noted that a problem for bulls might be the strength in Crude Oil, which would tend to strengthen the Canadian Dollar.

My fear about Crude Oil was confirmed, as its strength and push to new long-term highs was enough to stop the buss and produce a relatively strong move down. Although Crude is now off its highs, the Canadian Dollar still looks relatively strong, as we have had what looks like a bearish turn off the resistance at 1.3336. This is likely to be today’s pivotal level and I would only take a short trade below it.

usdcad

There is nothing of high importance due today concerning the CAD. Regarding the USD, there will be a release of CPI data at 12:30pm London time, and FOMC Meeting Minutes at 6pm.

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.