Yesterday’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 must be entered before 5pm New York time today only.
Long Trades
- Long entry after the next bullish price action rejection following a first touch of 1.2658 or 1.2620.
- 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
- Short entry after the next bearish price action rejection following a first touch of 1.2774 or 1.2839.
- 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
The medium-term bullishness continues. The price continues to rise healthily, due primarily to a strong U.S. Dollar, but the Canadian Dollar has also been relatively weak over the short-term. This has been one of the best pairs to use to take advantage of U.S. Dollar strength. The line of least resistance is still upwards, and the price looks set to continue to rise further, to at least 1.2775
There is nothing due today concerning the CAD. Regarding the USD, there will be a release of Retail Sales data at 1:30pm London time.