USD/CAD Forex Signal

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USDCAD: Bulls looking to 1.3250

Last Thursday’s signals were not triggered, as none of the key levels were reached that day.

Today’s USD/CAD Signals

Risk 0.50% per trade.

Trades may only be entered between 8am London time and 5pm New York time today.

Long Trade Ideas

  • Go long after the next bullish price action rejection following the next touch of 1.3251 or 1.3185.
  • 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 Ideas

  • Go short after the next bearish price action rejection following the next touch of 1.3286 or 1.3306 or 1.3345.
  • 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 last Thursday that the longer-term chart was showing we had a definite but weak bullish trend. This suggested that the best trades here would be bounces at support levels in the long direction. The broken trend line and 1.3251 looked especially likely to be supportive. This wasn’t tested as none of these levels were reached.

The picture now is looking less bullish, but the support at 1.3251 still looks very attractive as it is so confluent with the broken bearish trend line and it is also a major psychological level (1.3250). As we also have a (weak) long-term bullish trend, a bullish bounce here would be an interesting long trade opportunity and I would take a bullish bias if it sets up later.

usdcad

There is nothing of high importance 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.