Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s USD/CAD Signals
Risk 0.50% per trade.
Trades may only be taken 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 1.2774.
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
Short entry after the next bearish price action rejection following a first touch of 1.3050.
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 continues to rise overall, and look quite bullish, although it has not tested any key support levels for a while, so it is difficult to judge yet whether the pattern will hold. Over recent hours, there has been no real rise. The rise was sparked by the release of negative Canadian GDP data yesterday.
There is a bullish medium-term trend. There is no obvious resistance level before 1.3050, but the big psychological round number at 1.3000 is quite likely to have an impact if it is reached.
This pair could be interesting on the long side if the U.S. Dollar is weakened by the slew of data and central bank input which is due later today.
Regarding the USD, there will be a release of the ADP Non-Farm Employment Change at 1:15pm London time, followed by ISM Manufacturing PMI data at 3pm, Crude Oil Inventories at 3:30pm, and the FOMC Statement at 7pm. Concerning the CAD, the Governor of the Bank of Canada will be speaking at 9:15pm.