USD/CAD Forex Signal – 24 May 2018

Yesterday’s produced a profitable short trade from the bearish pin candlestick rejecting the resistance level at 1.2914.

Today’s USD/CAD Signals

Risk 0.75% per trade.

Trades may only be taken until 5pm New York time, over the next 24-hour period.

Long Trades

— Long entry after the next bullish price action rejection following the next touch of 1.2826 or 1.2793.

— 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.

— Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.

Short Trade

— Short entry after the next bearish price action rejection following the next touch of 1.2914.

— 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.

— Take off 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 yesterday that the price was now approaching the top of the range, so there may be a converse opportunity to go short from 1.2914 approaching. I did not have much confidence in the new support level at 1.2839 so I would be extremely careful attempting to go long from there. This worked out well. There is no change to the technical picture which has lasted for several days: a wide-ranging pattern between approximately 1.2750 an 1.2914. The long-term charts show there is no real trend in this pair, with both the U.S. and Canadian Dollars relatively strong. Therefore, the best approach is likely to continue to be looking for longs close to 1.2750 and shorts close to 1.2914 until there is a major change. I much prefer the support at 1.2793 to the support at 1.2826: the latter level looks weak.

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

This article provided by NewsEdge.