USD/CAD Signal Update
Yesterday’s signals were not triggered as there was no suitable price action when key levels were reached.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be entered between 8am and 5pm New York time today.
Long Trade 1
Long entry after the next bullish price action rejection following a first touch of 1.3031.
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 Trades
Go short after the next bearish price action rejection following a first touch of 1.3189 or 1.3215.
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 this pair is choppy and remains difficult to read, the only feature that really stood out is the strong support close to the psychologically key level of 1.3000. I think this is still a correct approach as the price is all over the place, even if the swings are orderly. This is not a good pair to be making predictions for, except for the support close to 1.3000 being likely to hold.
There is nothing of high importance due today concerning the CAD. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time.