Yesterday’s signals were not triggered, as the bearish price action took place some way above 1.2781.
Today’s USD/CAD Signals
Risk 0.50% per trade.
Trades may only be taken between 8am London time and 5pm New York time today.
Long Trade 1
Go long after the next bullish price action rejection following a first touch of 1.2641.
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 Trade 1
Go short after the next bearish price action rejection following a first touch of 1.2800.
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 thought that 1.2781 could be interesting as resistance yesterday. It was close, but the bearish turn took place a little higher, broadly rejecting the round number at 1.2800. It probably makes sense to take a slightly bearish bias, but I do not see any good trading opportunities as likely to arise here in this pair today. The picture is too mixed to be confident of trading in any direction, with no real, clear trend. A spike up to the higher resistance level at 1.2860 might produce an interesting short trade opportunity.
There is nothing important due today concerning the CAD. Regarding the USD, there will be a release of Crude Oil Inventories at 3:30pm London time.