Yesterday’s signals were not triggered as there was no bearish price action at 1.2596.
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 1.2565 or 1.2539.
- 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
Although the price action has managed to erase the first support level which was at 1.2596, and although this pair is in a very strong downwards trend, it seems that the closer the price gets to 1.2500, the more likely it is to find support. We have a mall cluster of levels not far below, above 1.2500, which will probably act as a floor, at least for a while. Nevertheless, the great strength of the Canadian Dollar maintains this pair as an attractive sell on meaningful bullish pullbacks.
There is nothing due today concerning the CAD. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time.