Yesterday’s signals would have produced a losing long trade following the bullish engulfing candle rejecting the support level at 1.3082.
Today’s USD/CAD Signals
Risk 0.75% 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 1.2968.
· Put 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
· Short entry after the next bearish price action rejection following a first touch of 1.3050 or 1.3082.
· Put 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
The strongly bearish situation continues for another day, with the price flipping support levels into resistance easily, and the price going on to make new multi-month, long-term low prices. I would be extremely careful before making any long trades, even though the area below 1.3000 would normally be very attractive to long-term buyers. Short trades from any pull-backs to resistance levels look very attractive.
The Canadian Dollar is one of the strongest of all the major global currencies right now.
There is nothing due today concerning the CAD. Regarding the USD, there will be a release of Final GDP and Unemployment Claims data at 1:30pm London time.