Last Tuesday’s signals were not triggered, as there was no bullish price action at either 1.3011 or 1.2962.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm London time today only.
Short Trades
Go short after the next strongly bearish price action rejection following the next touch of 1.3011.
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 Trade
Go long after the next strongly 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.
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 Tuesday that if the support level at 1.3011 was tested again and held, it might provide a good long trade entry. The price eventually broke below this level and has become more decisively bearish after using the psychologically important 1.3000 area as resistance. This is a bearish development, and the longer-term charts are now showing a slight bearish trend, so short trades generally look likely to work out better than long trades. There is a quite a way to fall before reaching the next support level, so I would take a bearish bias today if the price can break convincingly below 1.2900.
There is nothing important due today concerning either the CAD or the USD.