USD/CAD Forex Signal - 7 May 2019

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Yesterday’s signals produced a long trade entry from the bullish doji which rejected the support level at 1.3432 and made the minimum 20 pips of profit.

Today’s USD/CAD Signals

Risk 0.75% per trade.

Trades must be taken between 8am London time and 5pm New York time today only.

Long Trades

  • Go long after the next bullish price action rejection following the next touch of 1.3402 or 1.3376.
  • 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.

Short Trades

  • Go short after the next bearish price action rejection following the next touch of 1.3432 or 1.3529.
  • 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.

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 yesterday that we could get an interesting bullish breakout above 1.3529 but also that the round number below that at 1.3500 could be an obstacle to a further rise, and the relative weakness of the Canadian economy could also prevent the Loonie mirroring Crude Oil very closely now.

The price never quite reached 1.3500 but I was correct to see that area as possible resistance for the time being. The price has now retreated into its comfort zone and neither the bulls nor the bears have an edge at present. For this reason, it would probably make sense to stand aside and not trade this currency pair today.

The picture is slightly more bearish technically, with new flipped support to resistance at 1.3432.

USD/CAD Signal

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.