Last Thursday’s signals produced a profitable short trade following the bearish inside bar break rejecting the resistance level at 1.3745. This trade would still be open and in increasing floating profit, as at the time of writing.
Today’s USD/CAD Signals
Risk 0.50% per trade.
Trades may only be taken between 8am and 5pm New York time today.
Long Trade 1
- Long entry after the next bullish price action rejection following a first touch of 1.3588.
- 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
- Short entry after the next bearish price action rejection following a first touch of 1.3671 or 1.3746.
- 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
During the latter half of last week, the price remained essentially contained by the nearest support and resistance levels. However, with the big gain in the price of crude oil since the market opened this week, the Canadian Dollar has gained a lot of ground and finally broken out of its range and down below the former support level at 1.3671, which has now probably been flipped to become resistance.
There is no long-term trend.
There is nothing scheduled today concerning either the CAD or the USD.