Last Thursday’s signals were not triggered, as there was no bearish price action at 1.3155.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be taken before 5pm New York time today only.
Short Trade
- Go short after the next bearish price action rejection following the next touch of 1.3281.
- 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 bullish price action rejection following the next touch of 1.3182 or 1.3144.
- 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 Thursday that I would look to trade reversals from the edges of the range between about 1.3050 and 1.3150. In the end we got a breakout above the highs, and significantly, Friday saw this pair close at a 50-day high, which puts the edge with the bulls. The U.S. Dollar is generally strong, but is advancing much more strongly against other currencies, perhaps because a recovery in the price of Crude Oil over recent hours is helping the Canadian Dollar hold up.
In any case, we see bullish waves with retracements holding at support, so I will maintain a bullish bias today above 1.3182.
There is nothing important due today concerning either the CAD or the USD. It is a public holiday today in the U.S.A.