USD/CAD Forex Signal

Yesterday’s signals were not triggered as none of the key levels were ever reached.

Today’s USD/CAD Signals

Risk 0.75% per trade.

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

Long Trades

• Long entry after the next bullish price action rejection following the next touch of 1.2732 or 1.2669.

• Place 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 Trades

• Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2785, 1.2815 or 1.2840.

• Place 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 price reaches 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.

USD/CAD Analysis

I wrote yesterday that if 1.2670 held, the price should continue to rise, if not, then a trip back to 1.2600 was more likely. The level did hold, and the price did continue to rise, but it now looks as if it is making a bearish turn just below the nearest resistance level at 1.2785 which suggests we are most likely to see a bearish pull back today. Another factor suggesting this is that there are three resistance levels packed quite closely between 1.2785 and 1.2840 which are likely to weigh heavily. There is no long-term trend in this pair, so it is all short-term trend and support and resistance levels which are most likely to determine price movement. The U.S. data release later could have a major impact upon the price and move it in an unexpected direction.

There is nothing due today concerning the CAD. Regarding the USD, there will be a release of Preliminary GDP data at 1:30pm London time, followed by Crude Oil Inventories at 3:30pm.