Last Thursday’s signals produced a profitable short trade entry near the end of the day off the resistance level at 1.3089.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm New York time today only.
Short Trade
Go short after the next strongly bearish price action rejection following the next touch of 1.3089.
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 run.
Long Trade
Go long after the next strongly bullish price action rejection following the next touch of 1.3003.
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 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 Thursday that although we were are approaching a recent swing high area, the short-term action looked bullish and it would not be a great surprise if the bulls were able to drive the price up to the next resistance at 1.3089. This was a good call and in fact that resistance area held and produced a nice short trade at the end of the day which made a good profit.
The price has now failed at the higher resistance level at 1.3118 but is now resting on the former resistance at 1.3087 which may now have become support, so at present the price is finely balanced. If the price breaks firmly below 1.3087 as the London session gets underway, I would take a mildly bearish bias. There is no long-term trend and the price is oscillating over higher time frames so moved tend to give back what they gave within a few days.
There is nothing important due today concerning either the CAD or the USD.