Yesterday’s signals were not triggered as the bearish price action took place just above 1.2774, although the level at 1.2635 did act as good support.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be taken before 5pm London time today only.
Long Trades
- Long entry after the next bullish price action rejection following a first touch of 1.2635 or 1.2596.
- 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 1.2701.
- 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
This pair stands out in the Forex market as having the strongest and most consistent trend of the more important currency pairs, in the bearish direction of course. We had another forceful downwards movement yesterday after the bullish retracement to the 1.2775 area. The price now looks set to retest the support at 1.2635 which held yesterday. I maintain a bullish outlook but a double bottom at 1.2635 is quite possible and might produce another bullish movement.
There is nothing due today concerning either the CAD or the USD.