By: DailyForex
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be taken between 8am London time and 5pm New York time.
Long Trade
- Go long after the next bullish price action rejection following the next touch of 1.2814 and 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.
Short Trade
- Go short after the next bearish price action rejection following the next touch of 1.2914.
- 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 took a bullish bias yesterday and this worked out very poorly, although it was mitigated by the fact that the price cut right through the supportive zone I had identified, without giving any false long trade entries. Although the U.S. Dollar took a pause yesterday from its recent strength, the real story here was the strength of the Canadian Dollar, which has probably been boosted by the rise in Crude Oil. At the time of writing the price is breaking strongly below the support level at 1.2814. It looks like there is a lot of short-term bearish momentum here that might be possible to ride. I have a bearish bias today.
There is nothing due today concerning the CAD. Regarding the USD, there will be a release of CPI data at 1:30pm London time.