USD/CAD Forex Signal

13 June 2017 7:52:25 AM

By: DailyForex.com

Yesterday’s signals were not triggered, as there was no bullish price action at any of the key support levels which were reached.

Today’s USD/CAD Signals

Risk 0.50% per trade.

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

Long Trade 1

  • Go long after the next bullish price action rejection following a first touch of 1.3210.
  • 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 Trades

  • Go short after the next bearish price action rejection following a first touch of 1.3312 or 1.3373.
  • 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

This pair seized the market’s attention during the latter part of yesterday’s New York session when the Bank of Canada’s Senior Deputy Governor Wilkins suggested a rate hike might be on the way. This had the effect of sending the Canadian Dollar sharply higher, and the effect is still being felt in trading as I write hours later, with the Loonie going on to make new highs. This pair was no exception, and the price cut through three major levels of anticipated support like a knife through butter. 

There is no long-term trend in this pair, which suggests that the move should end in a significant pull back. However, it is too early to say how much further this pair might fall before that happens. I would be very careful in taking any long trade today. A quick pull-back to the nearest resistance at 1.3312 could be an excellent opportunity to enter a short trade.

 USDCAD

There is nothing due today concerning the CAD. Regarding the USD, there will be a release of PPI data at 1:30pm 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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