Yesterday’s signals produced a losing trade following the bullish inside candle rejecting the support level at 1.3454.

Today’s USD/CAD Signals

Risk 0.50% per trade.

Trades must be entered before 5pm New York time today only. 

Long Trade 1

• Go long after the next bullish price action rejection following the first touch of 1.3373.
• 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 run.

Short Trade 1

• Go short after the next bearish price action rejection following the first touch of 1.3671.
• 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 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 yesterday that long trades were looking like the better position. I was wrong, the pair continued its medium-term bearish trend and made new low prices which have not been seen for over one month. The downwards movement is well “supported” by two long-term bearish trend lines which are successfully pressing down on the price. The rise in the value of the Canadian Dollar is helped by the continuing increase in the price of crude oil.

There is certainly a medium-term bearish trend, but it should be noted there is no true long-term trend.

(Click on image to enlarge)

There is nothing due today concerning the CAD. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time.