Yesterday’s signals were not triggered as neither 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 only.
Long Trades
- Long entry after the next bullish price action rejection following a first touch of 1.2353, 1.2278 or 1.2256.
- 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, 1.2491, or 1.2547.
- 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
The price has resumed its downwards movement, and looks set to test the key support area at 1.2353 over the next hours, so that level might be reached today. There is a strong long-term downwards trend in this currency pair, with the price reaching a new 2-year low last week. Alternatively, should the price rise from here, there are several new probable resistance levels, and a bearish reversal at any of them would look to be an excellent trade. I maintain a bearish bias.
There is nothing due today concerning either the CAD or the USD.