USD/CAD Forex Signal – 02 October 2018

By Adam Lemon

Last Thursday’s signals were not triggered, as none of the key levels were reached during that day’s session.

Today’s USD/CAD Signals

Risk 0.75% per trade.

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

Short Trade

— Go short after the next strongly bearish price action rejection following the next touch of 1.2884.

— 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 run.

Long Trade

— Go long after the next strongly bullish price action rejection following the next touch of 1.2750.

— 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 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

I wrote last Thursday that the break above the former resistance level at 1.3011 was is a bullish sign and so I took a bullish bias that day. This was a fair call, as the price rose quite a lot further before topping out just below the nearest resistance. However, from that moment, this pair has fallen very sharply and strongly, painting a much more bearish picture. This has been caused by the surge in the price of Crude Oil which pulls up the Canadian Dollar as Canada is a leading oil producer. Despite the bearishness, over the short-term there are signs that the price is bottoming out and will now make a bullish retracement. I see a short trade at a bearish bounce at the nearest resistance as the best potential trade set-up.

Regarding the USD, the Chair of the Federal Reserve will be giving a minor speech at 3pm London time. There is nothing due today concerning the CAD.

This article provided by NewsEdge.