USD/CAD Forex Signal - Tuesday, August 22

Yesterday’s signals were not triggered as none of the key levels were ever reached.

Today’s USD/CAD Signals

Risk 0.75% per trade.

Trades must be entered between 8am London time and 5pm New York time today only.

Long Trades

Long entry after the next bullish price action rejection following a first touch of 1.2541 or 1.2522.

Put the stop loss 1 pip below the local swing low.

Adjust 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 1

Short entry after the next bearish price action rejection following a first touch of 1.2692.

Put the stop loss 1 pip above the local swing high.

Adjust 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

The long-term bearish trend has resumed in earnest over recent days, with the price selling-off from 1.2774 and moving down in two strong bearish waves. Yesterday saw another downwards movement, although it was not as strong as the previous waves, not even close. I maintain a generally bearish bias here, but the support starting at 1.2542 is looking increasingly likely to produce some bullish bounce.