USD/CAD Forex Signal

Last Thursday’s signals produced a losing short trade at the bearish price action which took place at the resistance level identified at 1.3050.

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 1.3120 or 1.3053.

• 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.

• Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.

Short Trade

• Short entry after the next strongly bearish price action rejection following the next touch of 1.3281.

• 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.

• Take off 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.

USD/CAD Analysis

I noted last Thursday that we had seen bullish action but that it was chaotic. The picture has become simpler, with safe-haven assets such as the U.S. Dollar getting a strong boost while riskier assets and commodity currencies took a hit, and this was the case with the Canadian Dollar. The price has established clear and higher support levels. We have a slight pull-back now against the impulsive bullish movement, and if this reaches 1.3120 it might produce a good long trade entry. The price has plenty of room to rise as there are no obvious resistance levels until 1.3281.

I have a bullish bias today above 1.3120.

There is nothing important due today concerning either the CAD or the USD.