Yesterday’s signals were not triggered, as the bearish price action at 1.3119 did not occur until after 5pm London time.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be taken before 5pm London time, during the next 24-hour period only.
Long Trades
Go long after the next bullish price action rejection following the next touch of 1.3119 or 1.3047.
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.
Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.
Short Trade
Go short after the next strongly bearish price action rejection following the next touch of 1.3182.
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.
Remove 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 took a bearish bias yesterday, which did not work out well as the price initially fell but then eventually reversed sharply with a bullish “V” formation as the second bottom within a bullish double bottom candlestick pattern. The price has broken above the former resistance level at 1.3119, which initially held for a while, and seems to have become established above it, which is a bullish sign. There are probably going to be other pairs which will be better to trade today, but the stronger U.S. Dollar and new higher flipped support suggests that the price is most likely to continue to move upwards, so I have a weakly bullish bias today.
There is nothing important due today regarding the CAD or the USD.