USD/CAD Signal Update
Yesterday’s signals were not triggered as none of the key levels were ever reached.
Today’s USD/CAD Signals
Risk 0.50% per trade.
Trades may only be taken before 5pm New York time today.
Long Trades
Long entry after the next bullish price action rejection following a first touch of 1.3189 or 1.3152.
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 run.
Short Trades
Short entry after the next bearish price action rejection following a first touch of 1.3316 or 1.3398.
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 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
The technical situation is basically unchanged, with the price sitting on a floor of support at 1.3189. However, it is looking increasingly as if the floor will be broken, as the action has a slightly bearish pattern and does not look as if it is about to rise. This is a tough call but in any case, if the floor is broken a strong downwards move should be expected. It would mean the end of the long-term bullish trend which is still barely in force.
There is nothing due today regarding the CAD. Concerning the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time.