Last Monday’s signals were not triggered as none of the key levels were reached during that session.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be taken before 5pm New York time today only.
Long Trade 1
- Go long after the next bullish price action rejection following a first touch of 1.3684.
- 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 1.3734.
- 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
There is a long-term bullish trend which has been very strong in recent weeks, yet now the price is struggling to break up past the psychologically key 1.3750 area. This is likely to persist until the Non-Farm Payrolls release tomorrow. A strong push down after this news release would be likely to be a spike which could be traded long if it runs out of momentum.
Concerning the USD, there will be a release of Unemployment Claims data at 1:30pm London time. Regarding the CAD, there will be a release of Trade Balance data at the same time, as well as a speech by the Governor of the Bank of Canada later at 9:25pm.