Last Wednesday’s signals were not triggered as the key levels hit were all exceeded by the subsequent price action.
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 1.2219 or 1.2122.
- 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
We have seen a steady yet bouncy progression upwards for more than one week now, against the long-term bearish trend. The U.S. Dollar has been recovering and it is expressed in this pair, but not as strongly as it is elsewhere. It is notable that the FOMC spike high was not exceeded yet. If the U.S. Dollar turns truly bearish again soon, this pair will be set to fall. The price is in a channel which is about as even as this pair’s channels ever get, so the upwards movement looks set to continue in the meantime.
There is nothing important due today concerning either the CAD or the USD.