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 and 5pm London time today.
Short Trades
Short entry after the next strongly bearish price action rejection following the next touch of 1.3011.
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 last Thursday that if as longer-term charts were showing a slight bearish trend, so I would take a bearish bias if the price could break convincingly below 1.2900. This was a good call, as that round number level held steadily and is now pushing the price up, albeit very slowly. There is not much action here in this pair, but I think a bearish rejection of 1.3000 (a psychological level) and 1.3011 (horizontal resistance) at the same time could provide a good short trade entry if it happens. Apart from that, I have no directional bias on this pair today.
There is nothing important due today concerning the CAD. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time.