By: DailyForex
Last Wednesday’s signals were not triggered, as none of the key levels were ever reached during the specified session.
Today’s USD/CAD Signals
Risk 0.50% per trade.
Trades must be entered between 8am London time and 5pm New York time today only.
Long Trades
- Go long after the next bullish price action rejection following a first touch of 1.2486, 1.2445, or 1.2415.
- 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 Trade 1
- Go short after the next bearish price action rejection following a first touch of 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
There is still no change yet in the technical picture, which shows a clear and consistent bullish channel. There is a reasonably clear sequence of higher lows. I have no reason to hold anything except a bullish bias, particularly as the price is nearer the lower boundary of the channel than the higher one, and a strong bullish rejection of the supportive trend line and the level at 1.2486 simultaneously could be the start of a powerful bullish move. There might be a good opportunity here today, so it is worth keeping an eye on this pair.
There is nothing significant due today concerning either the CAD or the USD. It is a public holiday in the U.S.A.