USD/CAD Forex Signal

Last Thursday’s signals were not triggered, as there was no bearish price action at 1.3047.

Today’s USD/CAD Signals

Risk 0.75% per trade.

Trades may only be entered until 5pm New York time, during the next 24-hour period only.

Long Trade

• Go long after the next bullish price action rejection following the next touch of 1.3142.

• 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.

Short Trades

• Go short after the next bearish price action rejection following the next touch of 1.3254 or 1.3312.

• Place 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 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 last Thursday that this pair had become very interesting, as it had been building bullish pressure under the resistance at 1.3050 to produce a dramatic bullish breakout. This was a great call, as the strong bullish break came, and the price just kept rising and rising on Friday, closing last week right on its high, which was a bullish sign.

The pair is now in a clear long-term trend and has just made a new 6-month high price. It seems set for further gains this week, with Canada getting hit with American tariffs which is producing a negative impact on its currency.

The price has sold off just a little since its open this week but has not done anything to change the overall picture. It would be a surprise if we do not see still higher prices over the next few days. The resistance at 1.3250 may hold the price down, at least for a while, as that is confluent with a key psychological level.

I have a bullish bias today below 1.3250.

There is nothing important due today concerning either the CAD or the USD.