USD/CAD Forex Signal – 25 September 2018

By Adam Lemon

Last Thursday’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 between 8am and 5pm London time today.

Short Trades

— Short entry after the next strongly bearish price action rejection following the next touch of 1.3011.

— 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 1.2826.

— 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.

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 if as longer-term charts were showing a slight bearish trend, so I would take a bearish bias if the price could break convincingly below 1.2900. This was a good call, as that round number level held steadily and is now pushing the price up, albeit very slowly. There is not much action here in this pair, but I think a bearish rejection of 1.3000 (a psychological level) and 1.3011 (horizontal resistance) at the same time could provide a good short trade entry if it happens. Apart from that, I have no directional bias on this pair today.

There is nothing important due today concerning the CAD. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time.

This article provided by NewsEdge.