Yesterday’s signals produced a profitable long trade following the bullish outside candle rejecting the support level identified at 1.2541. If not done already, it would probably be a good idea to take partial profits or otherwise protect the trade against turning into an overall loss.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be taken from 8am until 5pm New York time today only.
Long Trades
- Long entry 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
- Short entry after the next bearish price action rejection following a first touch of 1.2702.
- 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 price has remained above 1.2522, which is a bullish sign pointing to a likely rise to the 1.2700 area, as there is no resistance within this gap-like area. The fact that the 1.2522 level has been flipped to become strong support suggests that although the long-term bearish trend is not necessarily over, its health is in serious doubt. A strong NFP number tomorrow should send the price up to 1.2700 at least.
There is nothing due today concerning the CAD. Regarding the USD, there will be a release of Unemployment Claims at 1:30pm London time followed by ISM Non-Manufacturing PMI data at 3pm.