Yesterday’s signals produced a profitable short trade following the bearish rejection of the resistance level at 1.2781. It looks as if the direction may have reversed now, so it would probably be wise to take profit.
Today’s USD/CAD Signals
Risk 0.50% per trade.
Trades must be entered before 5pm New York time today only.
Long Trade 1
Long entry 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 Trade 1
Go short after the next bearish price action rejection following a first touch of 1.2781.
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
The bearish pattern remains intact, with the resistance level at 1.2781 holding nicely. There is no long-term trend and the direction over the short-term now looks bullish, so it is probably going to be difficult to trade this pair today unless a clear double top emerges later at 1.2781. There will probably be better opportunities in other currency pairs today. It is possible that the renewed strength in Crude Oil will drag the positively correlated Canadian Dollar along with it, so I have a slight bearish bias as the bullish Crude Oil trend looks strong.
There is nothing important due today concerning either the CAD or the USD.