USD/CAD Forex Signal – 02 July 2018

Last Thursday’s signals were not triggered, as there was no bullish price action at 1.3254.

Today’s USD/CAD Signals

Risk 0.75% per trade.

Trades may only be entered until 5pmNew York time, during the next 24-hour period.

Long Trade

— Go long after the next bullish price action rejection following the next touch of 1.3047.

— 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

— Go short after the next strongly bearish price action rejection following the next touch of 1.3274.

— 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 wrote last Thursday that although I had a weakly bullish bias above 1.3254, the Canadian Dollar was showing signs of strengthening. The Loonie did eventually get much stronger, pushing the price below 1.3254 and finally convincingly breaking the dominant medium-term bullish trend we had seen in this currency pair. The price action still looks quite bearish, so although I have no directional bias, it looks as if the price will move downwards during the London session. Although there is a long-term bullish trend, it is almost certainly going to take a while for buyers to recover enough to start to bid the price up again in a significant way.

There is nothing important due today concerning the CAD. Regarding the USD, there will be a release of ISM Manufacturing PMI data at 3pmLondon time.

This article provided by NewsEdge.