USD/CAD Forex Signal

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USDCAD: Bullish consolidation between 1.3289 and 1.3345

Today’s USD/CAD Signals

Risk 0.75% per trade.

Trades must be taken prior to 5pm New York time today.

Long Trade Idea

  • Go long after the next bullish price action rejection following the next touch of 1.3289.

  • 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

  • Go short after the next bearish price action rejection following the next touch of 1.3345 or 1.3359.

  • 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

We have a very slow and weak bullish trend over the long term. The price is currently trading within a bullish consolidation pattern between 1.3289 and 1.3345. A rejection of either level, or the higher resistance level at 1.3359, could be an excellent trade. If there is a sustained break below 1.3289, this could see a sharp further fall down to the 1.3200 area.

I see the best potential set up today as a long trade following a bullish bounce at 1.3289.USDCADThere is nothing of high importance due today concerning the CAD. Regarding the USD, there will be a release of CPI (inflation) data 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.