Yesterday’s signals were not triggered as the price did not reach 1.2541 until the end of the session.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be entered between 8am London time and 5pm New York time today only.
Long Trade 1
- Long entry after the next bullish price action rejection following a first touch of 1.2522 or 1.2448.
- 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
- Short entry after the next bearish price action rejection following a first touch of 1.2615.
- 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 general bearishness has continued in tune with the long-term trend. However, it is notable in recent hours that the price has been reluctant to get below the supportive zone from 1.2541 to 1.2522. Despite that, it is not rising from here with any conviction, so a break seems possible. It is very difficult to predict what is going to happen here. In any case, a break below the psychologically important 1.2500 area will be a bearish sign, if it happens.
There is nothing due today concerning the CAD. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time.