USD/CAD Forex Signal - 21 August 2019

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USDCAD: Still bullish above 1.3286

Yesterday’s signals were not triggered as there was no clear touch of 1.3310 until after the end of the New York session.

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 1.3286 or 1.3251.
  • 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 1.3345 or 1.3365.
  • 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 picture was looking more bullish still and would remain bullish as long as the price could stay above the new support at 1.3310. In fact, the price tried to remain above that level all day but could not make the new highs I was looking for during the early part of the London session, so it was not surprising that later the price broke below the former support at 1.3310 and invalidated it.

Despite this, I still see hope for bulls to catch an entry into this weak bullish trend at a pull back to 1.3286 or even 1.3251, provided there is a solid bullish bounce at either level when it is reached. I would be prepared to take a bullish bias here if that happens.

If the price can get established above 1.3365 that would be a very bullish sign to watch out for.

Anyone trading this pair today should be very careful, as there are major data releases for both currencies.

usdcad

Regarding the CAD, there will be a release of CPI (inflation) data at 1:30pm London time. Concerning the USD, there will be a release of FOMC Meeting Minutes at 7pm.

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.