Last Thursday’s signals were not triggered, as neither of the key levels were ever reached.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm New York time today only.
Long Trade
Go long after the next bullish price action rejection following the next touch of 1.3055.
Place 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.
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.
Short Trades
Go short after the next bearish price action rejection following the next touch of 1.3165.
Place 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.
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 the picture had become much more bearish now, and there were no key support levels below until 1.3055, so the price had plenty of room to fall further. I took a bearish bias on this pair today below 1.3115 until 1.3055. Although the price did not break below 1.3115 that day, it has fallen further since then, so I was on the right track.
This pair remains interesting as we have seen an abnormally strong movement in the Canadian Dollar, so we may see more momentum to the downside in this pair. However, at present the U.S. Dollar is relatively strong, so the move is probably not going to happen yet. Alternatively, a strong upwards movement from the support at 1.3055 is also quite possible due to the relatively high level of volatility. I would therefore be prepared to take trades from strong reversals of key levels in either direction and see this pair as an interesting one to watch.
There is nothing of high importance due today regarding either the CAD or the USD.