Yesterday’s signals may have produced a profitable short trade following the rejection of the resistance zone between 1.3399 and 1.3423. As the price is looking consolidative, it would probably be wise to take at least partial profit immediately.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be taken before 5pm New York time today.
Long Trade 1
Go long after the next bullish price action rejection following a first touch of 1.3290.
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 Trade 1
Short entry after the next bearish price action rejection following a first entry into the zone between 1.3399 and 1.3423.
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
The price turned very precisely at the resistance at 1.3400 and fell convincingly from there, although there wasn’t a precise entry trigger on the H1 chart. It looks very much as if the price is going to consolidate between 1.3290 and 1.3400 for a while.
There is nothing due today regarding the CAD. Concerning the USD, there will be a release of Unemployment Claims at 2:30pm London time, followed 15 minutes later by a speech from the Chair of the U.S. Federal Reserve.