Last Thursday’s signals were not triggered, as there was insufficiently bullish price action at either 1.2204 or 1.2145.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be taken between 8am London time and 5pm New York time today.
Long Trade 1
- Go long after the next bullish price action rejection following a first touch of 1.2000.
- 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 1.2256.
- 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
I wrote last Thursday that following the Bank of Canada’s surprise rate hike and the pair’s sharp fall, it seemed to still have some selling momentum, and it has continued to fall to new multi-year lows. This seems set to continue, as there are no obvious support levels before the psychologically key round number at 1.2000. I see no reason not to be very bearish here, with the Canadian Dollar last week’s top performer of all the liquid global currencies.
There is nothing due today concerning either the CAD or the USD.