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USD/CAD Forex Signal - 26 October 2015

By Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.

USD/CAD Signal Update

Last Thursday’s signals were not triggered as the price did not reach either of the key levels that day.

Today’s USD/CAD Signals

Risk 0.75% per trade.

Trades must be entered between 8am and 5pm New York time today only.

Long Trade 1

  • Go long following a bullish price action reversal on the H1 time frame immediately upon the next touch of 1.3064.

  • Place 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.

  • Remove 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 1

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3200.

  • Place 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.

  • Remove 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.

 

Short Trade 2

  • Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.3300.

  • Place 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.

  • Remove 50% of the position as profit when the price reaches 20 pips in profit and leave the remainder of the position to run.

USD/CAD Analysis

I was a little early to be looking to get long last Thursday, but Friday proved me right as the price was strongly supported at 1.3064, subsequently rising quite rapidly to a point very close to my anticipated resistance at 1.3203, from where it has fallen off slightly. The bearish sentiment on the Canadian dollar continues and the key levels all remain intact. We may be sitting at minor support at the time of writing at around 1.3150.

A return to 1.3064 could make a really strong double bottom and provide a great long entry.

USDCAD

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

Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.

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