USD/CAD Forex Signal – 07 August 2018

By DailyForex

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

Long Trade

— Go long after the next bullish price action rejection following the next touch of 1.2826.

— 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 Trades

— Go short after the next strongly bearish price action rejection following the next touch of 1.3041 or 1.3085.

— 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 yesterday that going into the week, it does look as if the price is poised to move further down, so I will be looking to take a slightly bearish bias. Although I was avoiding this pair yesterday, it has been an accurate view, as we see the price having continued to move down with surprising strength in line with the bearish price channel shown in the price chart below. I now have a bearish bias below 1.3000, with new resistance just under that price looking very attractive for a potential short trade entry today.

There is nothing important due today concerning either the CAD or the USD.

 

This article provided by NewsEdge.