Last Thursday’s signals were not triggered as there was insufficiently bullish price action at 1.3496.
Today’s USD/CAD Signals
Risk 0.50% per trade.
Trades must be taken before 5pm New York time today only.
Long Trades
* Go long after the next bullish price action rejection following a first touch of 1.3454 or 1.3373.
* 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 Trade 1
* Go short after the next bearish price action rejection following a first touch of 1.3551.
* 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
I thought last week that this pair would stop its advance around the 1.3500 area but that it would take a little time, and this is what seems to have happened. The long-term bearish trend line did not hold precisely, but the price could not remain above it for long and so I see it remaining influential. The action today is not likely to be centred on this currency pair, so there will probably be better trading opportunities elsewhere.
There is nothing due today concerning either the CAD or the USD.