USD/CAD Forex Signal

01 June 2017 8:39:45 AM

By: DailyForex.com

Last Tuesday’s signals produced a profitable short trade following the bearish pin candle rejecting the identified resistance level at 1.3500, and was good for a profit of about 40 pips.

Today’s USD/CAD Signals

Risk 0.50% per trade.

Trades may only be taken until 5pm New York time today. 

Long Trade 1

  • Go long after the next bullish price action rejection following a first touch of 1.3408.
  • 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

  • Go short after the next bearish price action rejection following a first touch of 1.3500.
  • 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 interesting technical developments are the break of the second bearish trend line, following the break of the closest one (both are shown in the chart below), as well as the fact that key support and resistance levels are essentially holding. Taken together, the picture is one of consolidation, really a nice range between approximately 1.3400 and 1.3500. An eventual stronger move upwards looks a little more likely than downwards. The pair will probably continue within this current range until the true Non-Farm Payrolls and associated data are released tomorrow.

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 the ADP Non-Farm Employment Change forecast at 1:15pm London time, followed by Unemployment Claims at 1:30pm, ISM Manufacturing PMI at 3pm, and Crude Oil Inventories at 4pm.

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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