USD/CAD Forex Signal

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USDCAD: Bullish above 1.3310

Yesterday’s signals produced an excellent long trade from the bullish inside candlestick on the hourly chart which was part of a structure rejecting my highlighted support level at 1.3251. It would probably be wise to close out any remaining floating profit if the price gets established below the new higher support at 1.3310.

Today’s USD/CAD Signals

Risk 0.50% per trade.

Trades must be taken before 5pm New York time today only.

Long Trade Ideas

  • Long entry after the next bullish price action rejection following the next touch of 1.3310, 1.3286, or 1.3251.
  • 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 Ideas

  • Short entry after the next bearish price action rejection following the next touch of 1.3345 or 1.3365.
  • 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 picture now was looking less bullish, but the support at 1.3251 still looked very attractive as it was so confluent with the broken bearish trend line and it was also a major psychological level (1.3250). This was a great call as it produced an excellent, profitable long trade.

The picture now is more bullish still and will remain bullish as long as the price can stay above the new support at 1.3310. The price may go on to break the two resistance levels nearby. If the price can get established above 1.3365, that would be a very bullish sign.

I will take a bullish bias today if the price is making new highs for the day at 9am or 10am London time.

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.