Yesterday’s signals were not technically triggered as the bullish price action occurred between the key levels, however any long trade taken from the bounce there would be doing well. It could be worth taking more partial profit at about 1.2600.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be taken from 8am London time until 5pm New York time today.
Long Trade 1
- Go long after the next bullish price action rejection following a first touch of the zone between 1.2541 and 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 Trade 1
- Go short after the next bearish price action rejection following a first touch of 1.2692.
- 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 price continued downwards yesterday following its recent strong bearish pushes, helped by better than expected Canadian Core Retail Sales data. This movement was in line with the long-term bearish trend. However, when the price reached a key supportive zone centred around 1.2525, there was strong buying which has now pushed the price up to the 1.2600 area, which has acted as minor resistance. If the round number is broken, the price may continue to rise, but watch out for possible topping at 1.2620 or 1.2640.
There is nothing due today concerning the CAD. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time.