USD/CAD Forex Signal
|Last Thursday’s signals produced a losing short trade at the bearish price action which took place at the resistance level identified at 1.3050.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm New York time today only.
Long Trades
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Long entry after the next bullish price action rejection following the next touch of 1.3120 or 1.3053.
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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 Trade
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Short entry after the next strongly bearish price action rejection following the next touch of 1.3281.
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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 noted last Thursday that we had seen bullish action but that it was chaotic. The picture has become simpler, with safe-haven assets such as the U.S. Dollar getting a strong boost while riskier assets and commodity currencies took a hit, and this was the case with the Canadian Dollar. The price has established clear and higher support levels. We have a slight pull-back now against the impulsive bullish movement, and if this reaches 1.3120 it might produce a good long trade entry. The price has plenty of room to rise as there are no obvious resistance levels until 1.3281.
I have a bullish bias today above 1.3120.
There is nothing important due today concerning either the CAD or the USD.
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