USD/CAD Forex Signal - 3 September 2019

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USDCAD: Threatening bullish breakout above 1.3365

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

Today’s USD/CAD Signals

Risk 0.75% per trade.

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

Long Trade Ideas

  • Go long after the next bullish price action rejection following the next touch of 1.3308.

  • 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

This pair is looking more bullish, as it threatens to finally truly break out of this range which has been holding it in a very weak bullish trend for quite a long time.

We are getting new higher support levels and a break of a bearish trend line.

However, the resistance levels at 1.3345 and 1.3365 continue to hold.

If we can get a breakout above 1.3365 that will be a very bullish sign and we could see a strong, fast bullish move which could be a great long trade opportunity.

Surely this zone from 1.3345 to 1.3365 is going to be today’s pivotal point, or pivotal zone if you prefer. A short trade from this area could also be interesting upon a failed attempt at a bullish breakout.USDCADThere is nothing of high importance due today concerning the CAD. Regarding the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time.

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.
Learn more from Adam in his free lessons at FX Academy