Last Thursday’s signals produced a long trade following the bullish inside bar break on the hourly chart from the support level identified at 1.2815. This gave approximately 35 pips of profit before unfortunately returning to be stopped out, before taking off again.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm New York time today only.
Long entry after the next bullish price action rejection following the next touch of 1.2815.
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.
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.
Last Thursday I took a very bullish bias on this pair despite the absence of a long-term trend. I noted that there was a long way to run until the next resistance level is reached at about 1.3050, so the line of least resistance should continue to be upwards once the price can get properly clear of 1.2850. This turnout to be a correct approach and this is one of the most clearly trending currency pairs over the medium term, as can be seen in the chart below. There is every sign that the price will continue to move upwards. The next key resistance level is at 1.3050, but of course the large round number at 1.3000 could also be resistant if reached.
There is nothing due today concerning the CAD. Regarding the USD, there will be a release of ISM Non-Manufacturing PMI data at 3pm London time.