Last Thursday’s signals were not triggered as there was no bearish price action at 1.2630 or 1.2658.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be taken until 5pm New York time today.
Long Trades
Go long after the next bullish price action rejection following a first touch of 1.2541 or 1.2522.
Place 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.
Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.
Short Trades
Go short after the next bearish price action rejection following a first touch of 1.2692 or 1.2658.
Place 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.
Take off 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
The long-term bearish trend has resumed in earnest over recent days, with the price selling-off from 1.2774 and moving down in two strong bearish waves. Recent hours have seen a bullish retracement, although the price seems to be failing to rise above the round number at 1.2600. There may also be minor resistance at 1.2620 which could provide a short trade entry opportunity if there is a bearish reversal there. Provided the retracement does not get too strong, I maintain a bearish bias over both the medium and long terms.
There is nothing due today concerning either the CAD or the USD.
