USD/CAD Forex Signal

24 May 2017 7:59:11 AM

By: DailyForex.com

Yesterday’s signals were not triggered as unfortunately the low of the day was made just a couple of pips above the support level identified at 1.3454.

Today’s USD/CAD Signals

Risk 0.50% per trade.

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

Long Trades

  • Long entry after the next bullish price action rejection following a first touch of 1.3509 or 1.3454.
  • 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 ride.

Short Trade 1

  • Short entry after the next bearish price action rejection following a first touch of 1.3671.
  • 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 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 it was looking likely that the price will bottom out now at or near to the support at 1.3454. I was write about that but wrong about better opportunities probably being elsewhere: this pair moved up quite strongly, and has formed new probable support just above the large round number at 1.3500. There is minor resistance at 1.3540 which seems to be causing a stall in the rise now.

There is no long-term trend in this pair, but there is plenty of short-term buying and a long at a rejection of 1.3509 could be a good trade.USDCAD Forex

Concerning the CAD, the Bank of Canada will be releasing their Rate Statement and Overnight Rate at 3pm London time. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm followed by the FOMC Meeting Minutes at 7pm.

 

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. Learn more from Adam in his free lessons at FX Academy.

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