USD/CAD Forex Signal – 03 October 2018

By Adam Lemon

Yesterday’s signals were not triggered, as none of the key levels were ever reached.

Today’s USD/CAD Signals

Risk 0.75% per trade.

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

Short Trade

— Short entry after the next strongly bearish price action rejection following the next touch of 1.2884.

— 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.

Long Trade

— Long entry after the next strongly bullish price action rejection following the next touch of 1.2750.

— 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.

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 yesterday that despite the recent bearishness, over the short-term there are signs that the price is bottoming out and will now make a bullish retracement. The price has continued to trade sideways with low volatility, with the action clearly in the major currency pairs for time being, so this pair is probably best avoided today. I have no directional bias at all.

Regarding the USD, there will be a release of the ADP Non-Farm Employment Change data at 1:15pm London time, followed by ISM Non-Manufacturing PMI at 3pm. The Chair of the Federal Reserve will be giving a minor speech at 9pm. There is nothing due today concerning the CAD.

This article provided by NewsEdge.