Yesterday’s signals were not triggered as there was no bearish price action at 1.3250.
Today’s USD/CAD Signals
Risk 0.50% per trade.
Trades may only be taken before 5pm New York time today.
Long Trade 1
- Long entry after the next bullish price action rejection following a first touch of 1.3164.
- Put 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
- Short entry after the next bearish price action rejection following a first touch of 1.3308.
- 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
There has been no change to yesterday’s technical picture: a consolidating triangle within an expanding wedge formation. I was correct to see the key resistance level at 1.3250 as likely to be weak, and it has been erased. The supportive trend lines are holding, however they look more vulnerable than the upper trend line, so I think a break down and move to 1.3164 looks to be the most likely scenario which will play out over the next few days.
There is nothing due today concerning the CAD. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time, and the Chair of the Federal Reserve will be speaking at 6pm.