Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be entered between 8am and 5pm New York time today only.
Long Trade 1
Go long after the next bullish price action rejection following a first touch of 1.2963.
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 1.3118 or 1.3215.
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
This pair is in a strong range, going nowhere over both the long and medium terms. Most of the Forex market is in this condition right now, but the ranging behaviour is particularly strong with this pair. That means that trading reversals off support and resistance and being ready to take profits quickly is most likely to be the way to successfully trade this pair. Be careful as this pair can be slippery and disrespect key levels. The resistance at 1.3118 may be worn out by now, but the next level above at 1.3215 could still be very useful, as could the support below at 1.2963.
There is nothing due today concerning the CAD. Regarding the USD, there will be a release of Core Durable Goods Orders data at 1:30pm London time.