By: DailyForex
Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s USD/CAD Signals
Risk 0.50% 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 1.2314 or 1.2219.
- 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 Trades
- Short entry after the next bearish price action rejection following a first touch of 1.2448 or 1.2491.
- 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
I wrote yesterday that I maintained a short-term bullish bias, and the price has maintained a generally bullish pattern which broadly higher prices. There is no change to the technical picture. It could be argued that the pace of the rise is slowing, and that there is some resistance at the round number of 1.2400. I maintain a very weak bullish bias.
Regarding the USD, there will be a release of Core Durable Goods Orders at 1:30pm London time, followed by Crude Oil Inventories at 3pm. Concerning the CAD, the Governor of the Bank of Canada will be speaking at 4:45pm.