Last Thursday’s signals were not triggered, but the high of the day was just a couple of pips below the resistance level identified at 1.3261 so that acted effectively as a cap on the price.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be taken from 8am London time until 5pm New York time today.
Long Trades
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Long entry after the next bullish price action rejection following the next touch of 1.3274 or 1.3251.
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Put 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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Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.
Short Trades
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Short entry after the next bullish price action rejection following the next touch of 1.3324 or 1.3367.
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Put 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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Remove 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.
USD/CAD Analysis
I wrote last Thursday that the price was consolidating over the short-term, so there was no directional momentum at the time of writing. I was ready to take a bearish bias if the price traded below 1.3180 for a couple of hours. It never did so, and eventually turned around and started rising, so that was a good enough call to at least stay out of trouble although it wasn’t profitably actionable.
The price has become significantly more bullish after this strong fall of recent days, caused by the deterioration of risk-on sentiment following President Trump’s latest tweets. The movement up has not been very large so the move may be fragile. I think 1.3274 will be today’s pivotal level, as if it holds for several hours, the price is most likely to continue its rise. Having said that, there is also support at the psychological level of 1.3250. If the price breaks firmly below 1.3250 later, I would be ready to take a bearish bias on this currency pair.
There is nothing of high importance due today concerning either the CAD or the USD.
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