Last Thursday’s signals were not triggered as there was no bearish price action at 1.2630 or 1.2658.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be taken until 5pm New York time today.
Long Trades
- Go long after the next bullish price action rejection following a first touch of 1.2541 or 1.2522.
- Place the stop loss 1 pip below the local swing low.
- Move the stop loss to break even once the trade is 20 pips in profit.
- Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.
Short Trades
- Go short after the next bearish price action rejection following a first touch of 1.2692 or 1.2658.
- Place the stop loss 1 pip above the local swing high.
- Move the stop loss to break even once the trade is 20 pips in profit.
- Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.
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 long-term bearish trend has resumed in earnest over recent days, with the price selling off from 1.2774 and moving down in two strong bearish waves. Recent hours have seen a bullish retracement, although the price seems to be failing to rise above the round number at 1.2600. There may also be minor resistance at 1.2620 which could provide a short trade entry opportunity if there is a bearish reversal there. Provided the retracement does not get too strong, I maintain a bearish bias over both the medium and long terms.
There is nothing due today concerning either the CAD or the USD.