USD/CAD Forex Signal

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USDCAD remains trapped in its long-term price range

Yesterday’s signals were not triggered, as none of the key levels were ever reached.

Today’s USD/CAD Signals

Risk 0.75% per trade.

Trades may only be entered from 8am London time until 5pm New York time today.

Long Trade

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

  • 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 noted yesterday that the price has been consolidating within this range from about 1.3376 to 1.3520 for almost one month now. This makes a breakout more likely to be explosive when it finally comes.

I was ready to get bullish once the price starts closing above 1.3529 or even 1.3500 but until then I thought it wise to stand aside unless you want to try fading the extremes of the range.

I take the same approach again today.USDCADThere 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.