USD/CAD Forex Signal

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Yesterday’s signals were not triggered, as there was no suitable price action when the key levels were reached.

Today’s USD/CAD Signals

Risk 0.75% per trade.

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

Long Trades

  • Long entry after the next bullish price action rejection following the next touch of 1.3429, 1.3359 or 1.3338.
  • 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 ride.

Short Trades

  • Short entry after the next bearish price action rejection following the next touch of 1.3463, 1.3479, or 1.3493.
  • 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 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 the picture had become less bullish, as despite the upwards thrusts to areas above 1.3529, the price kept falling back, and had even printed lower resistance. The problem was that risk-averse markets were selling Crude Oil heavily which hits the Canadian Dollar every time is tries to rise.

This wasn’t a great call, but it was correct in the sense that it was not bullish, and we have seen the price fall right back into its long-term range over the past day and not respect any of the key support or resistance levels which were reached. This suggests a lack of trend and unpredictable price movement, but there is definitely some short-term bearish momentum.

I would avoid trading this pair until the price action becomes clearer.

usdcad

There is nothing important due today concerning the CAD. Regarding the USD, the Chair of the Federal Reserve will be giving a speech at 2:55pm London time.

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.