USD/CAD Signal Update
Yesterday’s signals were not triggered yesterday, but there is a nicely profitable open long trade from 1.3031 which looks like being worth holding.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be entered between 8am and 5pm New York time today only.
Long Trade1
Go long after the next bullish price action rejection following a first touch of 1.3189.
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 Trade 1
Go short after the next bearish price action rejection following a first touch of 1.3315.
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 worried yesterday that the price was taking so long to move up from the support level at 1.3031 even though it may have been the start of a long-term bullish reversal. With yesterday’s strong move up, this now looks like a mistake in hindsight but at least part of the trade is still open. It now looks more like the beginning of a long-term bullish reversal.
Regarding the CAD, there will be a release of Manufacturing Sales data at 1:30pm London time. Concerning the USD, there will be releases of Building Permits, Philly Fed Manufacturing Index, and Unemployment Claims data at 1:30pm followed by Crude Oil Inventories at 4pm.