Last Thursday’s signals were not triggered as there was no bullish price action at 1.2448.
Today’s USD/CAD Signals
Risk 0.50% per trade.
Trades may only be taken before 5pm New York time today.
Long Trades
- Long entry after the next bullish price action rejection following a first touch of 1.2448 or 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 Trades
- Short entry after the next bearish price action rejection following a first touch of 1.2547 or 1.2608.
- 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
There is still no change to the technical picture, which shows a clear and consistent bullish channel. Although the price fell below the support level at 1.2448, it rose above it quite quickly and the level looks intact as it acted as resistance during that period and then the bullish break was clean. I have no reason to hold anything except a bullish bias.
There is nothing due today concerning the CAD. Regarding the USD, there will be a release of ISM Manufacturing data at 3pm London time.