USD/CAD Forex Signal

Adam Lemon DailyForex.com

Yesterday’s signals were not triggered, as there was insufficiently strong price action at both 1.3040 and 1.3085 to trigger an entry.

Today’s USD/CAD Signals

Risk 0.75% per trade.

Trades may be taken until 5pm New York time today only.

Long Trade

Go long after the next bullish price action rejection following the next touch of 1.2996.
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.
Remove 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 strongly bearish price action rejection following the next touch of 1.3050.
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.
Remove 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 noted yesterday that there had been a surprising bullish turn which was strong and dramatic, pushing the price well out of its medium-term bearish price channel. I saw this as a significant bullish development which really changed the technical picture and made the outlook considerably more bullish. I was wrong, and the technical situation now looks freer and more able to move up and yet very chaotic, making it hard to make any call. I have little faith in any of the levels or lines and it looks like a good idea to completely avoid trading this currency pair today.

There is nothing important due today concerning the CAD. Regarding the USD, there will be a release of PPI data at 1:30pm London time.

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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