Last Thursday’s signals were not triggered, as none of the key levels were reached that day.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be entered from 8am London time to 5pm New York time today.
Short Trade
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 1.2884.
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 1.2884 held for several hours we may see a move down, but it might not be wise to trade against the U.S. Dollar today when there are strong trends in its favour on all time frames. That resistance level did hold for a while but as I suspected, the U.S. Dollar just had too much underlying strength, and the price ended up making a healthy rise, despite the relatively bearish trend of recent weeks. The nearest resistance is quite confluent with the psychologically important 1.3000 level, which may strengthen it, but the medium-term picture is bullish, so a bullish bounce at the nearest support level could be good for a long trade entry today. I would take a bullish bias if that happened, but I would not take a bearish bias today regardless of what the upcoming price action might bring.
There is nothing important due today concerning either the CAD or the USD.