Last Thursday’s signals were not triggered as there was insufficiently bearish price action at 1.2488.
Today’s USD/CAD Signals
Risk 0.50% per trade.
Trades may only be taken before 5pm New York time today.
Long Trades
Long entry after the next bullish price action rejection following a first touch of 1.2590 or 1.2534.
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 1.2692.
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
I wrote last Thursday that it seemed likely that the best opportunity which might arise here would be a long trade following a bullish reversal as close to 1.2400 as possible. Although the price did not make a new low any closer to 1.2400, it did rise strongly, flipping a couple of former resistance levels to probable support. The USD has been selling off widely over recent hours, and it looks as if the price is going to come back down now, so we should wait and watch for reactions at any support levels which are reached. There is no strong long-term trend in this pair, but the USD is likely to remain generally strong until Wednesday at least, so keeping a long bias will probably be the best approach here. I see 1.2534 as the stronger level, more likely to hold than 1.2590.
There is nothing significant due today concerning either the CAD or the USD.