USD/CAD Forex Signal

Adam Lemon DailyForex.com

Last Thursday’s signals were not triggered as there was no bearish price action at 1.3206 or 1.3218.

Today’s USD/CAD Signals

Risk 0.75% per trade.

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

Long Trade

Go long after the next bullish price action rejection following the next touch of 1.3055.
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 ride.

Short Trades

Go short after the next bearish price action rejection following the next touch of 1.3150 or 1.3206.
Place 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 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 last Thursday that Crude Oil was strong and there WAS no support until 1.3055 so lower prices looked likely. I would take a bearish bias if the price could trade below 1.3150 for a couple of hours on relatively high volatility. This call was enough to keep out of trouble as the price never broke below 1.3150 that day.

The picture now is considerably more bearish with the Canadian Dollar quite strong, and the price is not far from multi-month lows. I would take a bearish bias if the price retraced to 1.3150 and made a strong bearish rejection and then broke quickly below 1.3125.

This pair is worth keeping an eye on due to the strong short to medium-term bearish momentum.

There is nothing of high importance due today concerning either the CAD or the USD.

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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