Last Thursday’s signals were not triggered as none of the key levels were ever reached.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be entered between 8am and 5pm New York time today.
Long Trades
- Go long after the next bullish price action rejection following a first touch of 1.2620, 1.2541, or 1.2522.
- 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 Trade 1
- Go short after the next bearish price action rejection following a first touch of 1.2702.
- 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
Despite the long-term bearish trend, this pair is showing no inclination to turn down yet, continuing to rise strongly and to print new support levels. There is a new level at 1.2620. My forecast that the price was most likely to continue rising to 1.2700 seems to be coming true and there is every indication that this level will be reached soon, at which point this bullish move will face a key test. It is interesting how uncoupled the Canadian Dollar has become from movement in Crude Oil prices, with no visible positive correlation between the two assets as Crude Oil continues its rise even as the Loonie falls.
There is nothing due today concerning either the CAD or the USD.