USD/CAD Signal Update
Last Thursday’s signals were not triggered as there was no bearish price action at 1.3315.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be taken from 8am to 5pm New York time today.
Long Trades
Long entry after the next bullish price action rejection following a first touch of 1.3257 or 1.3189.
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 Trade 1
Short entry after the next bearish price action rejection following a first touch of 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
Last week’s recovery by the USD was most pronounced in this pair, but we are seeing a general sell off in the USD now and it is falling in line with that.
I have more confidence in 1.3189 holding as support than in 1.3257.
Over the long-term, this pair is choppy and has tended to range so I don’t have any directional bias for better trades.
There is nothing of high importance due today concerning either the CAD or the USD.