By: DailyForex
Last Thursday’s signals were not triggered, as there was no bearish price action at 1.2586 when it was reached.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm New York time today only.
Long Trades
- Go long after the next bullish price action rejection following the next touch of 1.2487 or 1.2400.
- 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.
- 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
- Go short following a bearish price action reversal on the 1H1 time frame H1H1H1 time frame immediately upon the next touch of 1.2698.
- 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.
- Remove 50% of the position as profit when the price reaches 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 I expected the resistance level at 1.2586 to be strong if it is reached, noting that recent price action over recent hours suggested selling as the price gets close to it. I was wrong, the price continued to advance, and spiked up to almost reach the next resistance level at 1.2698 before falling back. The short-term action now looks bearish, although today is likely to be a quiet day anyway. There is no long-term trend, yet it seems that U.S. Dollar strength will probably persist for a while, so I see a long trade from a bullish bounce at the nearest support at 1.2487 as the best potential trade set-up.
There is nothing due today concerning either the CAD or the USD.