Yesterday’s signals were not triggered, as there was insufficiently bullish price action at 1.2860.
Today’s USD/CAD Signals
Risk 0.50% per trade.
Trades must be taken before 5pm New York time today only.
Long Trades
Long entry after the next bullish price action rejection following the next touch of 1.2846 or 1.2787.
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 Trade
Short entry after the next bearish price action rejection following the first touch of 1.3050.
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
This pair rose again yesterday, breaking up through the resistance at 1.2860 and printing new support close to that level, just under 1.2850. There are now no more key resistance levels until 1.3050, so even if the large round number at 1.3000 does act as resistance if it is reached, there is a long way that the price can move, and the line of least resistance is clearly upwards. There is no long-term trend in this currency pair, but the short to medium-term trend is clearly bullish. A bullish bounce after a pull back to 1.2850 would look like an attractive long trade entry opportunity.
There is nothing due today concerning the CAD. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time.