USD/CAD Forex Signal - 8 May 2019

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Yesterday’s signals were not triggered, as there was no bearish price action at 1.3432.

Today’s USD/CAD Signals

Risk 0.75% per trade.

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

Long Trade

  • Long entry after the next bullish price action rejection following the next touch of 1.3410.
  • 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 Trade

  • Short entry after the next bearish price action rejection following the next touch of 1.3529.
  • 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 yesterday that the price had now retreated into its comfort zone and neither the bulls nor the bears had an edge. I noted that the picture had become slightly more bearish technically, with new flipped support to resistance at 1.3432, but thought it would be wise to stand aside for the time being.

The price rose quite strongly yesterday, which I would not have expected, but it quickly fell back after peaking yet again not far from the crucial psychological level of 1.3500.

There is a very weak long-term bullish trend, but the price really needs to get established above 1.3500 or ideally 1.3529 for the bulls to show some real progress. I won’t be bullish until that happens, and it will probably remain a good idea to stand aside while the price is in this area.

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.