Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be taken before 5pm London time today.
Short Trades
Go short after the next strongly bearish price action rejection following the next touch of 1.3052, 1.3089, or 1.3118.
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.
Long Trades
Go long after the next strongly bullish price action rejection following the next touch of 1.3023, 1.2962, or 1.2950.
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.
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
This pair is in a long-term consolidation which is centred upon the 1.3000 area. The price is very close to that level now, meaning it is settling at its centre of gravity. Although the price has been falling over the medium term, there are some signs of buying whenever it dips below 1.3000, meaning we might now see a rise from this area. Unfortunately, this pair is generally hard to trade at present, and there is now news scheduled today so it is likely to be a quiet session. All in all, it will probably be best to avoid trading this pair today.
There is nothing important due today concerning either the CAD or the USD.