Yesterday’s signals were not triggered, as the price never reached 1.2815.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be taken 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 1.2915.
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.
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 Trades
Go short after the next bearish price action rejection following the next touch of 1.3050 or 1.3082.
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.
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
I wrote yesterday that there was every sign that the price would continue to move upwards. This was a correct approach, with the USD/CAD currency pair being one of the most clearly trending pairs over the medium term, as can be seen in the price chart shown below. There was a little resistance at 1.2915, which has been an inflection point in the past, so it might act as support if the price pulls back to the area. The next key resistance level is at 1.3050, but of course the large round number at 1.3000 has also been a little resistant. Now that this large round number has been reached, the rise might slow, but the situation still looks bullish and I maintain a bullish bias, albeit more cautiously.
There is nothing due today concerning the CAD or the USD.