Yesterday’s signals produced a profitable short trade off the bearish engulfing candle break down rejecting the resistance level identified at 1.3118.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be taken before 5pm New York time today.
Long Trade 1
Long entry after the next bullish price action rejection following a first touch of 1.3118.
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 Trades
Short entry after the next bearish price action rejection following a first touch of 1.3215.
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
Despite having been in a strong long-term range, this pair broke up bullishly strongly yesterday, and has probably flipped the former resistance at 1.3118 to become support. In fact, the USD was more bullish here against the CAD than anywhere else. This suggests that if the USD is boosted by President Trump’s speech during the Asian session, it could be felt strongly here with another big upwards movement.
There is nothing due today concerning the CAD. Regarding the USD, there will be a release of Preliminary GDP data at 1:30pm London time, followed by CB Consumer Confidence at 3pm.