Yesterday’s signals might have produced a profitable long trade following the strong bullish bounce of the support level identified at 1.2448. It would be wise to have already taken most or all the floating profit from such a trade, as it is counter-trend.
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 Trades
- Long entry after the next bullish price action rejection following a first touch of 1.2448 or 1.2411.
- 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 1.2541.
- 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
Despite the strong and long-term bearish trend, the price bounced very bullishly at the support level of 1.2448 yesterday. However, the price has so far not been able to break above the nearest resistance level of 1.2541. If it does, that will probably be a sign that the price is beginning a deeper bullish pull-back. As we are now right in between the two levels, a period of consolidation is now likely.
There is nothing due today concerning the CAD. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time.