USD/CAD Forex Signal – 23 May 2018

Yesterday’s signals may have produced a long trade at the bullish rejection of the support level at 1.2750, which would be well in profit if taken.

Today’s USD/CAD Signals

Risk 0.75% per trade.

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

Long Trades

— Go long after the next bullish price action rejection following the next touch of 1.2839 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 Trade

— Go short after the next bearish price action rejection following the next touch of 1.2914.

— 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 yesterday that the price was now quite close to the support and major psychological level of 1.2750, so there might be a chance to get long from a bullish bounce there. This turned out well as the wide range between 1.2750 and 1.2914 has continued to hold, with the price advancing strongly due to a fall in the value of the Canadian Dollar due mostly to the fall in the price of Crude Oil. The price is now approaching the top of the range, so there may be a converse opportunity to go short from 1.2914 approaching. I do not have much confidence in the new support level at 1.2839 so I would be extremely careful attempting to go long from there. I have no directional bias here today

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There is nothing due today concerning the CAD. Regarding the USD, there will be a release of Crude Oil Inventories at 3:30pm London time, followed by the FOMC Meeting Minutes at 7pm.

This article provided by NewsEdge.