Last Thursday’s signals may have provided a profitable long trade from the sharp bullish rejection of the support level at 1.3290, although there was an hourly close several pips below the level.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be entered between 8am London time and 5pm New York time today only.
Long Trade 1
* Go long after the next bullish price action rejection following a first touch of 1.3284.
* 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 1.3366.
* 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
This pair comes into a new week still standing out as having low volatility and high relative congestion compared to most other currency pairs. The chart below still shows a very technical picture, with a dominant bearish trend line yet strong support and a building supportive trend line below. There are plenty of possible entries, but also every sign that price movements are not going to move far directionally so high-probability profit targets would be very conservative.
There is nothing due today regarding the CAD. Concerning the USD, there will be a release of ISM Manufacturing data at 3pm London time.