USD/CAD Forex Signal

30 May 2017 8:26:38 AM

By: DailyForex.com

Yesterday’s signals were not triggered as the bullish price action took place a little way below the support level identified at 1.3444.

Today’s USD/CAD Signals

Risk 0.50% per trade.

Trades must be entered before 5pm New York time today only. 

Long Trade 1

  • Long entry after the next bullish price action rejection following a first touch of 1.3408.
  • 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 run.

Short Trade 1

  • Short entry after the next bearish price action rejection following a first touch of 1.3500.
  • 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 run.

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 fell and rebounded sharply just below the support level I had identified at 1.3444. Trading support and resistance levels tends to be difficult with this pair as it often slips the levels, rather than reacting very precisely to them. The price now is likely to range between 1.3400 and 1.3500. There is now a confluence of a long-term bearish trend line and a big round number at 1.3500 above, this could be an excellent level at which to find a bearish turn to exploit for a good long trade. A sustained break above 1.3500 would be a very bullish sign.

There is no long-term trend in this pair.

USDCAD

There is nothing due today concerning the CAD. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time

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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