USD/CAD Forex Signal

17 May 2017 7:35:18 AM

By: DailyForex.com

Yesterday’s signals were not triggered as none of the key levels were ever reached.

Today’s USD/CAD Signals

Risk 0.50% per trade.

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

Long Trade 1

  • Long entry after the next bullish price action rejection following a first touch of 1.3521.
  • 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

There is a long-term bullish trend, but the medium-term trend is even more bearish, with the price continuing to make lower lows and lower highs. At the time of writing, the chart below is hinting that the price could be starting to form a double bottom, but so far it is only a hint. The bears look to be in control for the time being, but there is high-impact data due later for both sides of this pair, which could upset the price action. Something to watch out for is the support level at 1.3521, as here we can expect support from the big round number at 1.3500 will begin to be felt.

USDCAD

Concerning the CAD, there will be a release of Manufacturing Sales data at 1:30pm London time. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm.

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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