Yesterday’s signals were not triggered as there was incorrect price action at both the key levels which were reached.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be entered between 8am London time and 5pm New York time today.
Long Trade 1
- Long entry after the next bullish price action rejection following a first touch of 1.3675.
- 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 Trades
- Short entry after the next bearish price action rejection following a first touch of 1.3745 or 1.3791.
- 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
I wrote yesterday that “Bulls should be encouraged, but the broken bullish trend line which held as resistance during the New York session could remain a resistant obstacle over the short term.” This is more or less how things turned out, with the price initially rejecting the resistance at 1.3746, before falling a few pips below the support and turning bullish again. It might remain difficult for the price to rise significantly, but the outlook is reasonably bullish, supported by the long-term trend, although I would still be very cautious of the resistance levels marked in the chart below.
There is nothing due today concerning the CAD. Regarding the USD, there will be a release of Crude Oil Inventories at 3:30pm London time.