Last Thursday’s signals were not triggered, as there was no bearish price action at 1.3369.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be entered between 8am London time and 5pm New York time today.
Long Trades
Go long after the next bullish price action rejection following the next touch of 1.3391 or 1.3335.
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 1.3470, 1.3529, or 1.3565.
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 this pair was relatively stable and range-bound so I expected that there would certainly be better opportunities elsewhere. While the price did rise a little as risk sentiment soured to become more “risk-off” over the day, this wasn’t a bad call as there was more action in other pairs. This pair should be more interesting over this coming week, as the commodity currencies such as the Canadian Dollar are weak, although the U.S. Dollar is also a little weak. The price is within sight of multi-week highs at around 1.3470 and a break above there, and ideally the psychological level at 1.3500 also, could see the start of a much stronger bullish directional movement. However, this might be hard to achieve if the U.S. Dollar turns fully bearish and breaks below the consolidation the Dollar Index has been making over the past several weeks.
I would take a bullish bias today if the price can close above 1.3470 for two consecutive hours, at least until 1.3530 is reached.
There is nothing of high importance due today concerning either the CAD or the USD.