USD/CAD Forex Signal

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USDCAD: Today’s pivotal point likely to be 1.3177

Yesterday’s signals were not triggered, as there was no bullish price action at 1.3206.

Today’s USD/CAD Signals

Risk 0.75% per trade.

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

Long Trade Ideas

  • Long entry after the next bullish price action rejection following the next touch of 1.3177, 1.3120 or 1.3104.
  • 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 1.3240, 1.3282, or 1.3300.
  • 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 resistance at 1.3240 was probably going to hold. I was more bearish below it, and this was a good call as the level held and the price continued to move down.

The picture now is one of a medium-term bearish trend but the support level at 1.3177 looks strong. A long trade there could be interesting if there is a convincing short-term bullish reversal, but a short from any of the resistance levels above also looks good.

Despite the ability to make a clear technical analysis here, there are major data releases due today for both currencies, so price action is likely to be unpredictable as New York opens, but we may well get a clear direction once the session gets underway after the data releases have been digested.

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 Retail Sales data also at 1:30pm.

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.