Last Thursday’s signals produced an excellent long trade entry at 1.2826, which produced some good profit. It looks like it will be wise to take most of the floating profit, especially if the price breaks below the current nearest support level at 1.2914.
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 only.
Long Trades
Go long after the next bullish price action rejection following the next touch of 1.2914, 1.2826, or 1.2793.
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 1.3047.
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 had a bearish bias above 1.2826 last Thursday. I was completely wrong, with the level ending up as excellent and very strong support. The technical picture now is still relatively ranging albeit with a slight bullish bias, yet it seems that the price is still essentially bouncing between the 1.2800 and 1.3000 areas. At the time of writing, the short-term action looks bearish, with the price looking quite likely to invalidate and break below the support level at 1.2914. There are no directional cues to take from longer-term charts, so I see the best likely strategy here as playing the range, looking for longs at 1.2826 and shorts at 1.3047.
There is nothing due today concerning either the CAD or the USD.