Last Thursday’s signals produced a losing long trade following the bullish pin candlestick which rejected the support level at 1.3212.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be entered between 8am London time and 5pm New York time today only.
Short Trade
- Go short after the next bearish price action rejection following the next touch of 1.3184 or 1.3208.
- Put 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.
- 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
- Long entry after the next bullish price action rejection following the next touch of 1.3055.
- Put 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.
- 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 as long as the support level at 1.3212 held, there was still hope for the bulls, and there was also a medium-term to long-term bullish trend which helps keep the odds in their favour.
There was no technical reason not to make this call, although it did not work out well. Still, the level at 1.3212 was pivotal, as the break below that produced a stronger downwards movement and we now see a more bearish picture after the bulls were threatening to really take off.
There is no trend and the best I can say is that if the price breaks below 1.3127 it would look like to continue to move down until it reached the support level at 1.3055.
There is nothing important due today concerning either the CAD or the USD.