USD/CAD Forex Signal - 6 June 2019

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Yesterday’s signals were not triggered, as there was no bearish price action at 1.3417.

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 Trades

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

  • Short entry after the next bearish price action rejection following the next touch of 1.3463.
  • 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 price action had now become clearer, with the bearish momentum following through, and the price seemed close to breaking down below its multi-week consolidation. If the price could break below 1.3338, I thought it would be a bearish sign, so as such a bullish bounce at that level, which was likely to be a pivotal point, could be a sign for an excellent reward to risk long trade entry over the medium term.

This was not a bad call, although the bullish turn happened higher up, just above the higher support level which I had identified at 1.3359. This bullish reversal keeps the price within its long-term range, and it could be that this low is not broken again for a long time.

The best that I can say today is that there is some way until the nearest resistance is reached, and this resistance is quite likely to hold for the rest of this week at least.

usdcad

There is nothing important due today concerning the USD. Regarding the CAD, there will be a release of Trade Balance data at 1:30pm London time.

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.