Last Monday’s signals were not triggered, as there was no bearish price action at 1.2528.
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 1.2415 or 1.2314.
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 1.2488 or 1.2535.
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
In my previous forecasts for this pair I have been talking about how it is becoming very difficult to forecast probable directional movements in this pair. It is becoming harder still, as the price has now been ranging between 1.2400 and 1.2600 for almost an entire month now. Gently consolidating trend lines can be drawn, suggesting there is no immediate end to the ranging in sight. Recent days have seen a more bearish tone, with two resistance levels above becoming confirmed, yet the supportive area around 1.2400 is yet to be tested. It looks as if the best opportunity which might arise here would be a long trade following a bullish reversal as close to 1.2400 as possible.
There is nothing significant due today concerning the CAD. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time.