Yesterday’s signals were not triggered as there was no double bottom at the support levels.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be taken before 5pm London time today only.
Long Trades
- Long entry after the next bullish price action rejection following a first touch of 1.2472, 1.2460, or 1.2424.
- 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
- Short entry after the next bearish price action rejection following a first touch of 1.2550 or 1.2570.
- 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 strong downwards trend continues, with the price action giving us no hint that it is coming to an end. The price continues to make new long-term lows and only quite shallow retracements. Although the pace has slowed, another bearish sign has been the erasure of the nearest former support level at 1.2500. Therefore, the best opportunity is likely to be a short trade following a retracement to and rejection of the new resistance level at 1.2550. It would be wise to be extremely careful before taking any long trades at all, and waiting until there is a very strong bullish double bottom at one of the key support levels nearby.
There is nothing due today concerning the CAD. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time.