Last Thursday’s signals were not triggered, as there was no bullish price action at 1.2608.
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 Trades
- Go long after the next bullish price action rejection following a first touch of 1.2353, 1.2278 or 1.2256.
- 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 1.2448, 1.2491, or 1.2547.
- 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
Last Thursday saw a release of Canadian GDP data, which came in significantly better than expected. This development, coupled with poor U.S. Non-Farm Payrolls data the following day, produced a very strong move down in this pair, in line with the long-term bearish trend. Friday saw the price make a new 2-year low.
The price eventually found support at 1.2353 and looks as if it will rise at least a little over the coming hours. There are several new probable resistance levels, and a bearish reversal at any of them would look to be an excellent trade, with so much recent downwards momentum. However as both countries are on holiday today, the market is likely to be extremely flat after the first half of the London session ends.
There is nothing due today concerning either the CAD or the USD. It is a public holiday in both the U.S.A. and in Canada.