Last Wednesday’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 must be taken between 8am London time and 5pm New York time today only.
Long Trades
Go long after the next bullish price action rejection following the next touch of 1.3432 or 1.3376.
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 Trade
Go short after the next bearish price action rejection following the next touch of 1.3529.
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 Wednesday that there was a very weak long-term bullish trend here, but that the price really needed to get established above 1.3500 or ideally 1.3529 for the bulls to show some real progress. I did not want to be bullish until that happened and thought that it would probably remain a good idea to stand aside while the price is in this area.
This was a good call, as although the price rose a little that day, it was unable to get established above 1.3500, so I correctly identified a pivotal level. The price went on to fall, and although it has recovered and possibly even established new higher support at 1.3432, this bullishness looks very vulnerable to me. The price is back within its long-term consolidation area, and until the bulls can push the price up to stick above 1.3500 or (even better) 1.3529 I would stay away from taking any trades in this currency pair.
There is nothing important due today concerning either the CAD or the USD.