USD/CAD Signal Update
Last Thursday’s signals were not triggered as there was insufficiently bearish price action at 1.3161.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be entered from 8am to 5pm New York time today only.
Long Trades
Go long after the next bullish price action rejection following a first touch of 1.3031 or 1.3004.
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.
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 a first touch of 1.3188.
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.
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 was correct yesterday to see the best trade opportunity as a short but wrong to be so confident in 1.3161 holding, whereas it was the level a little way above that at 1.3188 which finally provided the bearish turn.
The area below at 1.3000 is very psychologically significant and is a real floor. If broken down, it would really confirm a long-term bearish trend. Alternatively, it may provide a long-term bullish reversal, so it should be a very interesting area for anyone trading this currency pair.
There is nothing due today regarding the CAD or the USD.