Last Thursday’s Signals were not triggered as none of the key levels were hit during that session.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm New York time today only.
Long Trade 1
- Go long after the next bullish price action rejection following a first touch of 1.2839.
- Place 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 1.3050 or 1.3082.
- Place 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
This pair has been moving down strongly and steadily, breaking below the psychologically significant 1.3000 level and making new multi-month low prices. The price has recovered a little over recent hours, but looks as if it can easily turn and resume the downwards trend over the coming hours and days this week. There was support below but this has been erased, so the price does have room to fall further.
A short trade following a pullback to the area above 1.3000, ideally 1.3050, would probably be the best possible set-up scenario.
There is nothing due today concerning the CAD. Regarding the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time.