Last Thursday’s signals were not triggered as there was no sufficiently bullish price action at 1.2522 to trigger a long trade entry.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be taken before 5pm New York time today.
Long Trades
- Go long after the next bullish price action rejection following a first touch of 1.2448 or 1.2411.
- 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 Trade 1
- Go short after the next bearish price action rejection following a first touch of 1.2541.
- 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
This has continued to be one of the most strongly trending of all the currency pairs, it just keeps falling and flipping former support levels to resistance after breaking them. The movement is mostly gently but persistent. The fact that the 1.2500 area has broken down, and would be expected to be a key psychological area, is a significantly bearish sign. It looks as if the price will continue to fall over the short term.
There is nothing due today concerning either the CAD or the USD.