Last Thursday’s signals were not triggered, as none 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
- Short entry after the next bearish price action rejection following the next touch of 1.3464.
- Put 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.
- 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
- Long entry after the next bullish price action rejection following the next touch of 1.3324.
- Put 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 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 it was starting to look like the former bullishness had really ended and the price was sinking back into a consolidative and unpredictable area. I was ready to turn bullish if there had been a strong bounce at 1.3324 but that level was never reached.
The price is certainly in a bullish trend, but it is looking very weak as if it had run out of momentum. The Canadian Dollar has been dragged down by the recent strong falls in Crude Oil, with WTI trading well below the psychologically crucial $50 level.
I would take a bullish bias later if the price starts rising with unusually strong momentum, but not if the volatility remains relatively low.
There is nothing important due today concerning either the CAD or the USD.