Last Thursday’s signals were not triggered, as none of the key levels were reached that day.
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 Trades
Go long after the next bullish price action rejection following the next touch of 1.3053 or 1.2996.
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 1.3281.
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 the picture remained a little messy, but was increasingly bullish, with new higher support at 1.3114. This looked likely to be the day’s pivotal level. I was relatively correct in taking a bullish bias above that level as the New York session got underway, as the price did continue to rise over that time, although not by a great deal.
The price has now fallen quite strongly to the next support level at 1.3053. This level is holding up, and may form a bullish double bottom, but it is too early to be confident about that. Overall, the picture is messier.
The longer the price can stay above 1.3053, the more bullish I will become, but I have no directional bias here yet despite the long-term bullish trend.
There is nothing important due today concerning either the CAD or the USD.