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 London time and 5pm New York time today.
Long Trade
Long entry after the next bullish price action rejection following the next touch of 1.2826.
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
Short entry after the next strongly bearish price action rejection following the next touch of 1.3041 or 1.3085.
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 I still had a bearish bias below 1.3000, thinking the price was slowly falling and had a lot of room to fall further before meeting any support. The price remained above 1.3000 all day. Since then, the price has continued to slowly drift down within the medium-term bearish price channel shown in the chart below. It is likely to be a very slow trading day today, as it is a Monday with no news as well as a public holiday in Canada, so trading this pair is probably best avoided. However, going into the week, it does look as if the price is poised to move further down, so I will be looking to take a slightly bearish bias.
There is nothing important due today concerning either the CAD or the USD. It is a public holiday today in Canada.