USD/CAD Forex Signal – 21 May 2018

Last Thursday’s signals were not triggered, as there was no bearish price action at 1.2793.

Today’s USD/CAD Signals

Risk 0.75% per trade.

Trades must be entered between 8amLondon time and 5pmNew York time, over the next 24-hour period only.

Long Trades

— Go long after the next bullish price action rejection following the next touch of 1.2840 or 1.2793.

— 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.

— Remove 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 bearish price action rejection following the next touch of 1.2914 or 1.2946.

— 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.

— Remove 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 I had no directional bias. I noted that the psychologically key price level of 1.2750 which had acted as a pivotal point in the recent past could be interesting, and that the resistance level close by at 1.2793 did not look trustworthy, both of which were useful nuggets, as the price continued its advance off the support reached earlier at 1.2750. The price is now caught between several levels, going mostly sideways in a wide range. Rejections of the levels an be traded, but the pair lacks any real direction, with the U.S. Dollar very strong and the Canadian Dollar only marginally less strong. I have no directional bias today.

There is nothing due today concerning either the CAD or the USD. It is a public holiday in Canada today.

This article provided by NewsEdge.