Yesterday’s signals were technically not triggered, although the bearish price action was only a couple of pips or so above the resistance level at 1.3062 so may have triggered a nicely profitable short trade from there.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be taken before 5pm New York time today.
Short Trades
- Short entry after the next strongly bearish price action rejection following the next touch of 1.2988 or 1.3062.
- 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 wrote yesterday that although I had no directional bias, a break below 1.2988 would be a bearish sign. We had that break after the price turned just a few pips above the key resistance level identified at 1.3062. The price is also below the psychologically important 1.3000 level, and the price chart below shows that it has room to fall much further before encountering any further support levels.
There is a medium-term bearish trend and a very weak long-term bullish trend, which is the reason why it has been mostly difficult to trade this pair. However, bears should now be encouraged by this break below 1.2988, below which I am happy to take a bearish bias as long as the price action remains bearish.
There is nothing important due today concerning either the CAD or the USD.