Last Thursday’s signals were not triggered, as none of the key levels were reached that day.
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
· Go long after the next bullish price action rejection following the next touch of 1.2841.
· 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 the first touch of 1.2746, 1.2787, or 1.2846.
· 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 price fell dramatically at the end of last week very quickly, but seems to be turning at least a little bullish since this week opened. This is typical behaviour in the Forex market, where strong, quick moves usually give back much of what they take very quickly. There fact that there is no dominant long or even medium-term trend makes this behaviour even more predictable. This probably is not a great pair to be trading right now, if you are it should be best to stick to trading strong short-term rejections of any key level and being ready to take profits quickly and conservatively.
There is nothing important due today concerning either the CAD or the USD.