Yesterday’s signals were not triggered, as there was no bearish price action at 1.3312.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be taken before 5pm New York time, over the next 24-hour period.
Long Trade
Long entry after the next bullish price action rejection following the next touch of 1.3254.
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
Short entry after the next strongly bearish price action rejection following the next touch of 1.3362.
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 I maintained a bullish bias on this pair and still saw the Canadian Dollar as a great candidate for the short side of any Forex trade. This was a good call as this pair has continued to rise and the Canadian Dollar was the weakest of all the major currencies yesterday. A former resistance level was wiped out by yesterday’s action, leaving the way clear for a further advance to at least 1.3362. However, a look at the price chart below shows that although the price has remained close to its highs, the momentum is clearly slowing down, suggesting that a bearish pull back is becoming increasingly likely. This could be an opportunity to go long once any pull back ends. I am not very confident that the price will end today higher, but I am still long-term bullish here.
There is nothing important due today concerning either the CAD or the USD.