USD/CAD Forex Signal

05 June 2017 7:44:12 AM

By: DailyForex.com

Last Thursday’s signals were not triggered as there was no bearish price action at 1.3500.

Today’s USD/CAD Signals

Risk 0.50% per trade.

Trades must be entered between 8am and 5pm New York time today only. 

Long Trades

  • Long entry after the next bullish price action rejection following a first touch of 1.3472 or 1.3433.
  • 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 1.3542.
  • 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

There is no long-term trend in this pair. However, we do now see a clear and symmetrical bullish channel getting established. At the time of writing, the price is sitting on a confluence of both horizontal support and the lower channel trend line, so a bullish movement could provide an interesting long trade entry.USDCAD

There is nothing due today concerning the CAD. Regarding the USD, there will be a release of ISM Non-Manufacturing PMI 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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