Last Thursday’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 may only be entered between 8am London time and 5pm New York time today.
Long Trade 1
Go long after the next bullish price action rejection following a first touch of 1.2641.
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
Go short after the next bearish price action rejection following a first touch of 1.2746 or 1.2800.
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
I wrote last Thursday that I had a weakly bearish bias, and that the downwards movement was a little more likely to continue that reverse. This is what happened, with the price gradually grinding down in small swings and printing lower resistance levels. We now have a new resistance level at 1.2693 which I am not interested in as it is not truly established yet doe to the amount of congestion around it. The best trade which looks likely to set up would be a short trade following a bearish reversal at 1.2746. This is also confluent with a bearish trend line which should strengthen the resistance of that area.
There is no long-term trend, but there is a medium-term bearish trend that may continue. Trading will probably be lighter than usual due to the Canadian holiday today.
There is nothing important due today concerning either the CAD or the USD. It is a public holiday in Canada today.