Yesterday’s signals produced a short trade following a rejection of the resistance level identified at 1.3250, and it looks as if the floating profit on this trade will increase and the price eventually reach the support at 1.3164, which would be an appropriate place to take at least partial profit.
Today’s USD/CAD Signals
Risk 0.50% per trade.
Trades may only be entered before 5pm New York time today.
Long Trade 1
- Go long after the next bullish price action rejection following a first touch of 1.3164.
- 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
- Go short after the next bearish price action rejection following a first touch of 1.3250 or 1.3312.
- 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
It is notable that even the recent strength in the U.S. Dollar cannot stop the advance of the Canadian Dollar, with the resistance level at 1.3250 holding fast. The Canadian Dollar is currently the strongest of all the major global currencies traded in the Forex market.
There is nothing due today concerning either the CAD or the USD.