USD/CAD Forex Signal

Yesterday’s signals were not triggered, as there was no bullish price action at 1.3003.

Today’s USD/CAD Signals

Risk 0.75% per trade.

Trades may only be taken before 5pm New York time today.

Short Trades

• Short entry after the next strongly bearish price action rejection following the next touch of 1.3003 or 1.3089.

• 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.

• 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.

Long Trades

• Long entry after the next strongly bullish price action rejection following the next touch of 1.2952 or 1.2884.

• 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.

• 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 what will happen next here would depend mostly upon how the U.S. stock market did later. Further falls should send the price higher. A sustained break below 1.3000 would be a bearish sign and be technically significant. I was partly wrong as the market did fall a little, but the price here fell, significantly, below the psychologically important 1.3000 area. It looks like the price is now in a box between about 1.2950 and 1.3000 and it could breakout in either direction with some momentum, so these look as if they could become interesting levels to trade off later. I have no directional bias today.

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