Yesterday’s signals were not triggered as there was no bearish price action at 1.3684.
Today’s USD/CAD Signals
Risk 0.75% 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 1.3684 or 1.3588.
- 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 Trades
- Go short after the next bearish price action rejection following a first touch of 1.3745 or 1.3791.
- 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 wrote yesterday that if the price of this pair began to rise again quickly within the next 48 hours, that would be a sign that the strong bullish trend is likely to continue. This came to pass during the London session, with the price breaking up past the resistance level at 1.3684 which now looks to have been flipped into resistance. Bulls should be encouraged, but the broken bullish trend line which held as resistance during the New York session could remain a resistant obstacle over the short term. Overall, I remain bullish.
There is nothing due today concerning either the CAD or the USD.