Yesterday’s signals produced a short trade following a bearish pin candle rejecting the resistance level at 1.2702. This trade has already given the minimum of 20 pips of profit and there should be no risk left on this trade. It might still become a great trade for the remainder of the position.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be taken 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 Trades
· Go short after the next bearish price action rejection following a first touch of 1.2702 or 1.2774.
· 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
I wrote yesterday that the selling at 1.2702 was not looking convincing. It is a little more convincing now, with the resistance holding and producing a double top and a possible lower high beyond that too. If the long-term bearish trend resumes, this level will have been a great short entry point, and is certainly behaving as a very pivotal point. For that reason, a break now above the 1.2700 area would be a very bullish sign.
There is nothing due today concerning the CAD. Regarding the USD, there will be a release of Crude Oil Inventories at 3:30pm London time.