Last Thursday’s signals were not triggered, as neither of the key levels were ever reached.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm New York time today.
Short Trade
Go short after the next strongly bearish price action rejection following the next touch of 1.3281.
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 1.2962.
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 there was more life in this pair now, and it looked more likely that the price would move down over the course of today than up, at least until the support level at 1.2962 was reached. I was wrong, as the price actually moved up over the course of the day. We are a long way from either support or resistance, but I am starting to feel more bullish on this pair, as we are slowly seeing a long-term trend evolve. If nervous markets continue to push down the price of Crude Oil, then we are more likely to see the Canadian Dollar fall, which strengthens the bullish case. Yet I do not have any short-term bias here at present.
There is nothing important due today concerning either the CAD or the USD.