Last Wednesday’s signals were not triggered, as none of the key levels identified were reached during that session.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be entered between 8am London time and 5pm New York time today only.
Long Trades
Long entry after the next bullish price action rejection following the next touch of 1.2732 or 1.2646.
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.
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
Short entry after the next bearish price action rejection following the next touch of 1.2840
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.
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
I wrote last Wednesday that all the signs were that the trade (a long move from 1.2530) had a good chance to move further into profit. This is what happened, with the price breaking the former bearish trend line as a bullish confirmation, which can still be seen in the price chart below. The advance has been strong and technically very predictable over recent days. There are reasons to think the advance will continue, as tensions in the Middle East seem to be easing while the U.S. Dollar still looks strong. I have a bullish bias on this pair.
There is nothing due today regarding the USD. Concerning the CAD, the Governor of the Bank of Canada will be testifying before the Canadian Parliament at 8:30pm London time.