Last Thursday’s signals were not triggered, as none of the key levels were reached that day.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be taken between 8am London time and 5pm New York time today.
Long Trades
- Long entry after the next bullish price action rejection following the next touch of 1.3442 or 1.3402.
- 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.
Short Trades
- Short entry after the next bearish price action rejection following the next touch of 1.3473 or 1.3529.
- 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.
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 I would take a bullish bias if the price could trade above 1.3529 on above-average volatility for a couple of hours later. I thought a bullish move would be supported by the Bank of Canada’s current stance on monetary policy. This bullish move never happened, and the opportunity to establish a real long-term bullish trend may have passed as we see the price move back down into an area where it has spent a lot of time.
Bulls and bears look evenly balanced now, which means rejections of any key level in either direction probably won’t have much to differentiate them.
I have no directional bias on this pair and there probably won’t be any great trading opportunities here today. The most attractive levels are the support at 1.3402 and the resistance at 1.3529.
There is nothing important due today concerning either the CAD or the USD.