USD/CAD Forex Signal – 02 April 2018

USD/CAD Forex Signal – 02 April 2018

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 New York time today.

Long Trade

  • Go long after the next bullish price action rejection following the next touch of 1.2785.

  • 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 1.2946 or 1.2971.

  • 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 have been saying for a few days that this pair was probably going to be worth avoiding until it gets more direction. This remains the case, as the price here has continued to range, even after major data releases including Canadian GDP, as can be seen in the price chart below. The longer this consolidation pattern continues, the stronger the eventual breakout should be. A rejection of a key level is quite likely to happen first, so it would be wise to take any convincing rejection of a key level later today, and then try to hold onto it hoping for a breakout in the other direction. I have no directional bias.
USDCAD

There is nothing due today concerning the CAD. Regarding the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time.

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