Yesterday’s signals provided a profitable short trade following the bearish inside candlestick which rejected the resistance level identified at 1.2949.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be taken before 5pm New York time today only.
Short Trades
Short entry after the next strongly bearish price action rejection following the next touch of 1.2950 or 1.2988.
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.
Long Trade
Long entry after the next strongly bullish price action rejection following the next touch of 1.2826.
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.
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 I would take a bearish bias today if the price could begin to break below 1.2900, or at a failure to rise above 1.2950. The price failed right at 1.2950 and then moved down, so it worked out as a good call. I also noted the double bottom at 1.2900 which could give bulls some hope, and the price has bounced there again, and has now become a bullish triple bottom formation.
The overall picture still looks bearish, but a little less so, and we have major Canadian data due later which could cause some unpredictable, volatile price movement. I would be bearish after that release if there is another failure to rise above 1.2950.
There is nothing important due today concerning the USD. Regarding the CAD, there will be a release GDP data at 1:30pm London time.