USD/CAD Signal Update
Yesterday’s signals did identify key resistance correctly at 1.3121 but the price action was not bearish enough to trigger a valid short trade entry.
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 1.3074.
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 1.3189 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
We are starting to see a comeback by the U.S. Dollar albeit in a small way. This pair is where the greenback is really making itself felt as we see a break above former resistance, as well as a flipping of former resistance to support at 1.3074. Again, the big picture shows that the area around 1.3000 is a very crucial picot in determining the path of the price over the longer term.
There is no long-term trend so I cannot put a lot of faith in the longer-term direction of the price.
There is nothing due today concerning the USD. Regarding the CAD, there will be a release of Trade Balance data at 1:30pm London time.