Yesterday’s signals were not triggered as there was no sufficiently bullish price action at any of the former support levels which were reached during yesterday’s session.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be taken before 5pm New York time today.
Long Trades
· Long entry after the next bullish price action rejection following a first touch of 1.2411, 1.2406, or 1.2389, especially at a rejection of two or more of these levels simultaneously.
· 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
· Short entry after the next bearish price action rejection following a first touch of 1.2460 or 1.2472.
· 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
The long-term downwards trend has been reinforced by the FOMC release which weakened the U.S. Dollar everywhere, sending the price of this pair lower. However, it is notable that other currencies advanced more strongly against the greenback, and that the area around 1.2400 does seem to have provided support over recent hours. The buying has been just as strong as the selling. Although the highest probability does look to be a continuation of the bearish trend, the price does not look “heavy”. This means that there are probably going to be better opportunities elsewhere in the Forex market for now.
There is nothing due today concerning the CAD. Regarding the USD, there will be releases of Core Durable Goods Orders and Unemployment Claims data at 1:30pm London time.