USD/CAD Forex Signal
|Yesterday’s signals produced a nicely profitable long trade from the bullish engulfing candlestick which rejected the support level at 1.3000, offering a logical take profit on the spike to the nearest resistance level at 1.3085 during the Asian session.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be taken before 5pm New York time today.
Long Trade
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Go long after the next bullish price action rejection following the next touch of 1.3000.
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Place the stop loss 1 pip below the local swing low.
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Move the stop loss to break even once the trade is 20 pips in profit.
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Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
Short Trades
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Go short after the next strongly bearish price action rejection following the next touch of 1.3085 or 1.3136.
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Place the stop loss 1 pip above the local swing high.
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Move the stop loss to break even once the trade is 20 pips in profit.
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Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
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 yesterday that the resistance level of 1.3085 should be the day’s pivotal level: if it held for a few hours, the price would probably move down towards 1.3000 again, while a sustained break above 1.3085 would be a bullish sign. This is exactly what happened, it was a good call: the level held, the price moved down to 1.3000, where there was a very predictable and strong bullish bounce providing a nicely profitable long trade entry.
Both the nearest key levels have held and there is no change to the technical picture. I would want to see the price get out of the 1.3000 to 1.3085 range before entering any more trades.
Concerning the CAD, there will be a release of GDP data at 1:30pm London time. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm.
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