Last Thursday’s signals were not triggered as there was no bearish price action at 1.2460 or 1.2472.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be entered before 8am London time and 5pm New York time today.
Long Trades
- Go long after the next bullish price action rejection following a first touch of 1.2411, 1.2406, or 1.2389, especially at a rejection of two or more of these levels simultaneously.
- 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 1.2522 or 1.2534.
- 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
This pair is in a strong and sustained long-term downwards trend. There was a strong bullish retracement near the end of last week, however the price fell quickly back to its lows on Friday, requiring some readjustment of probable future resistance levels. Although the price still is prone to fall, there are initial signs that it may be beginning to bottom out above 1.2400. If the price cannot get below the recent lows or at least close to them, then another rise to the area above 1.2500 will be probable, and might provide another good opportunity to enter a short trade.
There is nothing due today concerning the CAD or the USD.