Yesterday’s signals were not triggered, as none of the key levels were reached during the specified time session.
Today’s USD/CAD Signals
Risk 0.50% per trade.
Trades may only be taken from 8am London time until 5pm New York time today.
Long Trades
- Long entry after the next bullish price action rejection following a first touch of 1.2486, 1.2445, or 1.2415.
- 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 Trade 1
- Short entry after the next bearish price action rejection following a first touch of 1.2608.
- 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
There is finally a small yet possibly meaningful change in the technical picture, with the price breaking below a supportive trend line. There is another supportive trend line a little below that which remains intact, but this is the first hint that the price may be ready for a downwards movement. The support at 1.2486 does look very solid though, so I would not be looking to open any new short trades here yet. For the time being I have a long bias, but this looks as if it could change tomorrow or later this week.
There is nothing significant due today concerning either the CAD or the USD.