Last Wednesday’s signals were not triggered as there was no bullish price action when the price reached 1.2486.
Today’s USD/CAD Signals
Risk 0.50% per trade.
Trades may only be taken before 5pm New York time today.
Long Trade 1
Long entry after the next bullish price action rejection following a first touch of 1.2415.
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 Trade 1
Short entry after the next bearish price action rejection following a first touch of 1.2528.
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
Last week this pair looked bullish, as it was steadily progressing upwards within a rising price channel. The lower trend line of this channel broke down, with the price now looking to make a more bearish progression, although the downwards movements are not strong and the key support near 1.2400 continues to hold. This makes it very difficult to forecast short-term price movements in this pair today. The best opportunity would probably be a short from a rejection of the new short-term bearish trend line and the resistance confluent around 1.2525. However it is likely to be a quiet day in the absence of major news items, so it might be that none of the key levels are reached.
There is nothing significant due today concerning either the CAD or the USD.