USD/CAD Signal Update
Yesterday’s signals were not triggered as there was no bullish price action at 1.3257.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm New York time today only.
Long Trade 1
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 Trades
Go short after the next bearish price action rejection following a first touch of 1.3257 or 1.3398.
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 wrote yesterday that I had more confidence in 1.3189 holding as support than in 1.3257. I was correct about that. I feel the same way today regarding 1.3257 as resistance in that I don’t have high confidence in it as a level, but it is there so I have marked it on the chart.
Over the long-term, this pair is choppy and has tended to range so I don’t have any directional bias for better trades. This pair remains difficult to read, the only feature that really stands out is the strong support close to the psychologically key level of 1.3000.
There is nothing of high importance due today concerning either the CAD or the USD.