USD/CAD Forex Signal - 2 April 2019

Yesterday’s signals were not triggered, as the initial bullish price action at 1.3304 was too weak.

Today’s USD/CAD Signals

Risk 0.75% per trade.

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

Long Trades

  • Long entry after the next bullish price action rejection following the next touch of 1.3241 or 1.3204.
  • 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 1.3340, 1.3376, or 1.3402.
  • 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.

USD/CAD Analysis

I wrote yesterday that the price was unlikely to get established above the nearest resistance level at 1.3376, so I thought either that or 1.3402 was going to be the day’s pivotal level. There was support at 1.3342 which was still holding, but it looked quite likely to break down so I would not be using that level yet.

This was a good call as 1.3342 did break down, and the price moved lower, before finding support at 1.3304. This is likely to be the day’s pivotal level and so far, it has held after being reached towards the end of yesterday’s New York session. If this level holds up as London opens, we are likely to see a bullish retracement which might hit 1.3340 which looks like it has probably become very solid support, so I would take a short bias there if there is a firm rejection of that resistance on above-average volatility.

usdcad

There is nothing of high importance due today concerning the CAD. Regarding the USD, there will be a release of Core Durable Goods Orders data at 12:30pm London time.

Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.