Last Thursday’s signals were not triggered, as the bearish price action took place above 1.3053.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be taken between 8am London time and 5pm New York time today.
Long Trade
- Go long after the next bullish price action rejection following the next touch of 1.2988.
- 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 Trades
- Go short after the next strongly bearish price action rejection following the next touch of 1.3062 or 1.3114.
- 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 wrote last Thursday that there was an extremely weak, long-term bullish trend and a weak medium-term bearish trend. I thought there would be better opportunities in the major currency pairs which were moving with more purpose and more pips.
I thought that a break above 1.3053 might justify a mildly bullish bias if it looked strong.
This was an OK call. The price did break above 1.3053 and continued upwards for approximately another 50 pips before falling again and respecting the weak medium-term bearish trend. So, overall, there is no change here and last Thursday’s analysis is still valid. A break below 1.2988 would be a bearish sign. I have no directional bias on this currency pair today.
There is nothing important due today concerning either the CAD or the USD.