Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm New York time today.
Long Trade 1
- Long entry after the next bullish price action rejection following a first touch of 1.2000.
- 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 1.2256.
- 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 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
There is no change to the situation outlined yesterday: continuing selling momentum, with new multi-year lows in sight. There are no obvious support levels before the psychologically key round number at 1.2000. I see no reason not to remain very bearish here, as the Canadian Dollar is staying strong even during the recent hours of U.S. Dollar strength. I maintain a bearish bias.
There is nothing due today concerning either the CAD or the USD.