USD/CAD Forex Signal

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USDCAD: Ranging Above 1.3000

Yesterday’s signals were not triggered, as there was no bullish price action at 1.3062.

Today’s USD/CAD Signals

Risk 0.75% per trade.

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

Long Trade Idea

  • Long entry after the next bullish price action rejection following the next touch of 1.2962.

  • Place the stop loss 1 pip below the local swing low.

  • Adjust the stop loss to break even once the trade is 20 pips in profit.

  • Take off 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 Idea

  • Go short after the next bearish price action rejection following the next touch of 1.3120.

  • Place the stop loss 1 pip above the local swing high.

  • Adjust the stop loss to break even once the trade is 20 pips in profit.

  • Take off 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 1.3060 area looked likely to again be the day’s pivotal point. However, after a small bullish bounce there early in the London session, the level became invalidated.

The technical picture has changed somewhat: zooming out, we can see the price is essentially just consolidating above 1.3000 and it is neither a bullish nor bearish type of consolidation. The action is very flat and dull, so I think this pair is best avoided for the time being.USDCADThere is nothing of high importance due today regarding 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.