Yesterday’s signals were not triggered as the bullish price action took place slightly below the support level at 1.2915.
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 Trades
Go long after the next bullish price action rejection following the next touch of 1.2815 or 1.2785.
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
Yesterday I maintained a cautious bullish bias as it looked as if the support level at 1.2915 had been re-established and so had a good chance to hold up the price. It initially acted supportively but was soon broken, so the level has been invalidated. This means we have a more bearish picture still, with a double top at the major round number of 1.3000 above, and a greater chance that the price will bull back more deeply to 1.2815 which is likely to provide support if it is reached soon. The price is moving up at the time of writing already. There is no long-term trend here, so trading this pair is probably best done by using short-term momentum.
Concerning the CAD, the Governor of the Bank of Canada will be speaking at 4pm London time, followed later by a council member speaking at 8:35pm. There is nothing important due regarding the USD