Last Thursday’s signals were not triggered as there was no bullish price action at either 1.3308 or 1.3250.
Today’s USD/CAD Signals
Risk 0.50% per trade.
Trades must be entered between 8am and 5pm New York time today only.
Long Trades
- Go long after the next bullish price action rejection following a first touch of 1.3250 or 1.3164.
- 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
- Go short after the next bearish price action rejection following a first touch of 1.3308.
- 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 price is forming a consolidating triangle within an expanding wedge formation. There is a key resistance level at 1.3250 which looks relatively weak as it is right in the middle of the consolidating triangle. However, it has been pivotal so it may hold.
The price is really trapped, so the next short-term movement is highly unpredictable. The best opportunities are likely to be fast spikes to and rejections from either 1.3308 or 1.3164.
There is nothing due today concerning the CAD. Regarding the USD, there will be a release of Core Durable Goods Orders data at 1:30pm London time.