Yesterday’s signals were not triggered as none of the key levels were ever reached.
Today’s USD/CAD Signals
Risk 0.50% per trade.
Trades must be entered from 8am to 5pm New York time today only.
Long Trades
- Go long after the next bullish price action rejection following a first touch of 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 Trades
- Go short after the next bearish price action rejection following a first touch of 1.2547 or 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 to the technical picture, which shows a clear and consistent bullish channel. The price almost reached the nearest resistance level at 1.2547 just before the London open but fell heavily before it was touched. Initial signs are that this move was a spike and not necessarily the start of a bearish move towards the lower end of the channel. I have no reason to hold anything except a bullish bias, but a bearish rejection of 1.2600 confluent with the upper channel trend line could be the start of a powerful bearish move.
There is nothing due today concerning either the CAD or the USD.