Last Thursday’s signals were not triggered, as there was insufficiently bearish price action when 1.3650 was reached.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be entered between 8am and 5pm New York time today.
Long Trades
Long entry after the next bullish price action rejection following the next touch of 1.3565 or 1.3529.
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 seemed that the bullish move may be running out of momentum, but the odds were still with the bulls as we had a clear long-term bullish trend here. I was ready to be bullish after a strong bounce at 1.3565. The price never fell back that far, but this was a good call as the price did rise a little further but ran out of momentum in the 1.3650 area. The price is now finally making a deeper retracement and looks quite likely to hit the support level at 1.3565 soon. A strong bullish bounce here could be a long trade opportunity. A break below the next lower support level at 1.3529 would be a bearish sign that this bullish trend may be over or at least taking a break from it. The USD is generally weak, so it seems the Canadian Dollar may have found a floor. I would be bearish below 1.3529 and bullish if there is a strong bounce at either of the support levels here later.
There is nothing of high importance due today concerning either the CAD or the USD.