Yesterday’s signals produced a long trade from the bullish pin candlestick which rejected the support level at 1.2793. It produced the minimum 20 pips of profit before returning to stop out at break even.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be taken from 8am London time until 5pm New York time.
Go long after the next bullish price action rejection following the next touch of 1.2750.
Place 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 ride.
Go short after the next bearish price action rejection following the next touch of 1.2793 or 1.2914.
Put the stop loss 1 pip above the local swing high.
Adjust the stop loss to break even once the trade is 20 pips in profit.
Take off 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.
I wrote yesterday that although the U.S. Dollar is in a long-term bullish trend, I had no directional bias. This pair is in a difficult position to trade, with longer-term charts showing a lack of clear direction. The only feature of the longer-term charts which looks as if it could be usefully applied today is the psychologically key price level of 1.2750 which has acted as a pivotal point in the recent past. As the U.S. Dollar is still quite bullish, and as there is no key news scheduled today, a strongly bullish bounce there might give an interesting long trade entry. There is a resistance level close by at 1.2793 but I do not have must trust in it.
There is nothing due today concerning either the CAD or the USD.
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