Yesterday’s signals produced a losing trade following the bearish inside candle break following the rejection of the resistant zone beginning at 1.3399.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may be taken between 8am London time and 5pm New York time today only.
Long Trade 1
- Long entry 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 touch of 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
There is more hint of a direction now following this period of consolidation between 1.3290 and 1.3400. However, the upper level of the resistant area, at 1.3423, might well still hold.
The situation looks more bullish, supported by the moderate recovery of the U.S. Dollar over recent hours.
Concerning the USD, there will be a release of CB Consumer Confidence data at 2pm London time. Regarding the CAD, the Governor of the Bank of Canada will be giving a speech 10 minutes later.