Last Thursday’s signals were not triggered, as none of the key levels were ever reached.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be entered between 8am and 5pm London time, over the next 24-hour period.
Long Trade
Long entry after the next bullish price action rejection following the next touch of 1.3047.
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.
Take off 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
Short entry after the next strongly bearish price action rejection following the next touch of 1.3119.
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.
Take off 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 took a bearish bias last Thursday, and the price did fall a little during the first half of that day, as well as subsequently moving down further. The situation looks bearish and I expect we will see lower prices over the course of today, so I have a bearish bias. Looking ahead to the medium term, the price may struggle to get below 1.3000 or even 1.3047 due to the psychological impact of reaching or getting close to that number. The new lower resistance at 1.3119 looks like an attractive level for a short trade if there will be a bearish reversal there.
There is nothing due today regarding the CAD or the USD.