USD/CAD Forex Signal

Last Thursday’s signals produced a losing short trade at the bearish price action which took place at the resistance level identified at 1.3050.

Today’s USD/CAD Signals

Risk 0.75% per trade.

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

Long Trades

Long entry after the next bullish price action rejection following the next touch of 1.3120 or 1.3053.
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 ride.

Short Trade

Short entry after the next strongly bearish price action rejection following the next touch of 1.3281.
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 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

I noted last Thursday that we had seen bullish action but that it was chaotic. The picture has become simpler, with safe-haven assets such as the U.S. Dollar getting a strong boost while riskier assets and commodity currencies took a hit, and this was the case with the Canadian Dollar. The price has established clear and higher support levels. We have a slight pull-back now against the impulsive bullish movement, and if this reaches 1.3120 it might produce a good long trade entry. The price has plenty of room to rise as there are no obvious resistance levels until 1.3281.

I have a bullish bias today above 1.3120.