Last Thursday’s signals were not triggered, as the bullish price action took place below 1.2971 but above 1.2909, and a similar thing happened with bearish action at the resistance levels.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm New York time today only.
Long Trade
· Go long after the next bullish price action rejection following the next touch of 1.2785 or 1.2732.
· 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.
· 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
· Go short after the next bearish price action rejection following the next touch of 1.2946 or 1.2971.
· 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.
· 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 the bears were driving short-term momentum, and this has continued to be the case. The price still looks bearish and is moving down, despite the long-term bullish trend. As often happens with this pair, support and resistance levels are very flexible, but 1.2785 below does look relatively reliable. Until that level is reached or almost reached, I have a bearish bias. A short off the nearest resistance level (which is quite confluent with the half-number at 1.2950) would also look like a good trade. I have a bearish bias over the short term on this pair.
There is nothing due today concerning either the CAD or the USD.