Yesterday’s signals produced a losing trade following a bullish break from an outside candle rejecting the support level identified at 1.3073.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be entered between 8am London time and 5pm New York time today only.
Long Trade 1
Go long after the next bullish price action rejection following a first touch of 1.2963.
Put 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.
Remove 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 a first touch of 1.3077 or 1.3121.
Put 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.
Remove 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
We have had decisively bearish developments over the past 24 hours: the price has broken below both a supportive trend line and a horizontal support level which was confluent with it. This area has now flipped to resistance at 1.3077. The outlook is more bearish now, but it is difficult to make large gains on individual trades in this pair as there is no long-term trend.
There is nothing due today concerning the CAD. Regarding the USD, there will be a release of PPI data at 1:30pm London time followed later by the Chair of the Federal Reserve testifying before Congress at 3pm.