Last Thursday’s signals were not triggered, as there was insufficiently bearish price action at 1.2914.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm New York time, during the next 24-hour period only.
Long Trades
Go long after the next bullish price action rejection following the next touch of 1.2946 or 1.2914.
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 Trades
Go short after the next bearish price action rejection following the next touch of 1.3000 or 1.3047.
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 best approach to this pair was likely to be looking for longs close to 1.2750 and shorts close to 1.2914 until there was a major change. The major change has finally come after many days of this range holding, with a bullish break above 1.2914 followed by a reasonably strong push up which now looks to have run out of momentum close to the psychologically important level of 1.3000. There is no long-term trend, although the pair is moving up due to U.S. Dollar strength and weakness in the Canadian Dollar caused by a strong fall in the formerly strong price of Crude Oil over recent days. I have no bias today as trading is likely to be very thin due to the public holidays in London and New York. It would be a hard call between the big number at 1.3000 holding for bears or the recent bullish momentum securing finally a break above that level.
There is nothing due today concerning either the CAD or the USD. It is a public holiday in the United States.