Yesterday’s signals were not triggered, as there was no bearish price action at 1.2448.
Today’s USD/CAD Signals
Risk 0.50% per trade.
Trades may only be taken before 5pm New York time today.
Long Trade 1
- Go long after the next bullish price action rejection following a first touch of 1.2448.
- 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
- Go short after the next bearish price action rejection following a first touch of 1.2547 or 1.2608.
- 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 again yesterday that I maintained a short-term bullish bias, and the price has maintained a generally bullish pattern which broadly higher prices. There is still no change to the technical picture. The price just touched the lower channel trend line and took off, breaking up past two resistance levels, which have probably now flipped to become support. I still maintain a bullish bias on this pair, but although the price is currently sitting on possible new support at 1.2491 as shown in the chart below, I prefer to wait for a pull-back to the lower support level at 1.2448.
There is nothing due today concerning the CAD. Regarding the USD, there will be a release of Final GDP and Unemployment Claims data at 1:30pm London time.