USD/CAD Forex Signal

22 May 2017 7:48:35 AM

By: DailyForex.com

Last Thursday’s signals were not triggered as unfortunately the high of that session was a few pips short of the identified resistance level at 1.3671.

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 Trade 1

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

The price has fallen by quite a lot over recent days and with the current strength in Crude Oil boosting the Canadian Dollar, it looks as if it is going to fall some more. However, the price is now approaching the 1.3500 level which could provide some support, and there is an obvious inflection point not far below that at 1.3455. Short trades down to that level will probably be the best opportunities in this currency pair today.USDCAD

There is nothing due today concerning either the CAD or the USD. It is a public holiday in Canada.

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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