USD/CAD Forex Signal

Adam Lemon DailyForex.com

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 may only be taken between 8am London time and 5pm New York time today.

Long Trades

Go long after the next bullish price action rejection following the next touch of 1.2785 or 1.2732.
Put 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

Go short after the next bearish price action rejection following the next entry into the zone between 1.2890 and 1.2909.
Put 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.

USD/CAD Analysis

I had no bias yesterday. This turned out to be the correct approach as almost nothing happened with this pair. It was a very quiet trading day, the price moved little, and the movement was technically insignificant. The price is almost equidistant from either support or resistance, so it looks like a wise course of action would be to stand aside until one of these levels are reached. There are likely to be better opportunities in other currency pairs in the meantime.

Regarding the USD, there will be a release of CPI data at 12:30pm London time. Concerning the CAD, the Governor of the Bank of Canada will be speaking at 2:15pm.

Author

Adam Lemon

DailyForex.com

Adam is a Forex trader who has worked within financial markets for over 12 years, including 6 years with Merrill Lynch. He is certified in Fund Management and Investment Management by the U.K. Chartered Institute for Securities & Investment.

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