USD/CAD Forex Signal – 14 May 2018

USD/CAD Forex Signal – 14 May 2018

Last Thursday’s signals produced a profitable long trade from the bullish inside candlestick which rejected the support level identified at 1.2750, but it only gave the minimum 20 pips of profit before being stopped out at break even.

Today’s USD/CAD Signals

Risk 0.75% per trade.

Trades must be entered before 5pm New York time.

Long Trade

  • Long entry after the next bullish price action rejection following the next touch of 1.2650.

  • 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 Trades

  • Short entry after the next bearish price action rejection following the next touch of 1.2814 or 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 had a bearish bias last Thursday, saying there seemed to be some strong short-term momentum. The price did continue downwards although there was some support as expected at 1.2750. Although that bullish bounce is providing some support in a sense, it is the resistance at 1.2814 which looks more interesting, and as most likely to provide a good set up today if it is rejected with a bearish reversal. However, I see it as quite likely that any good opportunities which might set up are likely to be in other currency pairs. I have no directional bias here.

USDCAD

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

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