USD/CAD Forex Signal

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USDCAD: Bearish consolidation below 1.3225

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 must be taken before 5pm New York time today.

Long Trade

  • Long entry upon the next touch of 1.3054.

  • 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 1.3250 or 1.3277.

  • 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 was weak and looked like it was still very vulnerable to a strong bearish breakdown.

It is very interesting that although the USD came back yesterday against almost every currency, it still looks just as weak here against the CAD. This tells us there is relative strength right now in the Canadian Dollar. Technically, the bearish consolidation continues, so there is no change there.

I would take a bearish bias if we get a strong bearish failure at 1.3250 later, or if the price breaks below 1.3150 during today’s New York session on above-average volatility.USDCADThere is nothing of high importance due today regarding the CAD. Concerning the USD, there will be a release of Core Durable Goods Orders data at 1:30pm 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.