USD/CAD Forex Signal - 7 August 2019

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USDCAD: Bullish breakout beyond 1.3250

Yesterday’s signals were not triggered, as there was no bearish price action when any of the identified resistance levels were reached yesterday.

Today’s USD/CAD Signals

Risk 0.50% per trade.

Trades may only be taken from 8am London time until 5pm New York time today.

Long Trade Ideas

  • Go long after the next bullish price action rejection following the next touch of 1.3266 or 1.3250.

  • 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 we were most likely to see the price continue to range within the 1.3185 to 1.3250 area, potentially giving scalping opportunities from both extremes. This was not a good call as the price instead broke out of this range to the upside as the Canadian Dollar was hit by the strong selloff in commodity currencies. However, it is important to note that the Canadian Dollar is must less active than the other commodity currencies (the AUD and the NZD), so what is happening here is not the heart of the market action, instead being more of a secondary effect.

The picture is more bullish now and it looks as if the price is going to continue to advance towards 1.3345, but I would rather trade short of the AUD and NZD today than the CAD.USDCADThere is nothing of high importance due today concerning either the CAD or the USD.

Andrew Keene spent 10 years as an independent equity options trader on the Chicago Board of Options Exchange, during which he spent the majority of his time as a market-maker for over 125 stocks. Andrew currently trades futures, currencies and commodities. When he's not trading, Andrew appears on top business television shows including CNBC's Squawk on the Street, Street Smart on Bloomberg TV and First Business, a show that is syndicated across the United States. Andrew graduated from the University of Illinois with a degree in Finance with a concentration in Accountancy.