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 be taken from 8am London time to 5pm New York time today only.
Long Trades
- Go long after the next bullish price action rejection following the next touch of 1.3336 or 1.3304.
- 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 1.3402 or 1.3470.
- 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 messy and unpredictable, without any long-term trend. The standout technical feature was the resistance at 1.3375 which looked very strong, so I thought a short from that level would probably be the best trade opportunity which could set up that day. I was on the right track, but the level was never reached, and we eventually got a bullish break to new highs.
The picture looks more bullish now although 1.3402 looks likely to be strong resistance. That is likely to be today’s major pivotal point, and I would take a bullish bias if the price can close above it for a couple of hours today, as it has plenty of room to rise to the very long-term highs below 1.3500. The problem for bulls might be the strength in Crude Oil, which will tend to strengthen the Canadian Dollar.
There is nothing of high importance due today concerning either the CAD or the USD.