Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be taken before 5pm London time today.
Short Trade
Short entry after the next strongly bearish price action rejection following the next touch of 1.3145 or 1.3260.
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.
Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
Long Trades
Long entry after the next strongly bullish price action rejection following the next touch of 1.3000.
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.
Take off 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
Trump's positive comments about the future of the NAFTA agreement, coupled with rising crude oil prices, have both supported the Canadian dollar. The pair broke down from the resistance at 1.3174 to the 1.3042 support level. There will still be a bullish opportunity in this pair if the resistance at 1.3000 remains intact. I prefer to buy the pair below the 1.3000 level. On the chart the pair is showing a break of the bullish trend which will be confirmed strongly if there was a move towards the support at 1.2970.
There is nothing important due today concerning the CAD. Regarding the USD, there will be the release of PPI data and crude oil inventories.