Last Thursday’s signals were not triggered as there was no bearish price action at 1.3500.
Today’s USD/CAD Signals
Risk 0.50% per trade.
Trades must be entered between 8am and 5pm New York time today only.
Long Trades
- Long entry after the next bullish price action rejection following a first touch of 1.3472 or 1.3433.
- 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
- Short entry after the next bearish price action rejection following a first touch of 1.3542.
- 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 no long-term trend in this pair. However, we do now see a clear and symmetrical bullish channel getting established. At the time of writing, the price is sitting on a confluence of both horizontal support and the lower channel trend line, so a bullish movement could provide an interesting long trade entry.
There is nothing due today concerning the CAD. Regarding the USD, there will be a release of ISM Non-Manufacturing PMI at 3pm London time.