Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be entered only before 5pm New York time today.
· Long entry after the next bullish price action rejection following the next entry into the zone between 1.2802 and 1.2785, or the next entry into the zone between 1.2746 and 1.2723.
· 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.
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.
I was correct yesterday in forecasting that a breakout above 1.2900 was not going to happen yet. Instead, the price only moved a little, within a consolidation pattern. This means there is no real change to the technical picture. There is a medium-term bullish trend, but the price is finding it very difficult to break above 1.2900. A strong breakout beyond this level should see a fast move up to 1.3000 or 1.3050, yet it is still more likely to happen later in the week than today. This means that a retracement to 1.2800 could be the next short-term move. I see a bullish breakout as more likely than a major failure at 1.2900, so I maintain a medium-term bullish bias. The level at 1.2900 might end up becoming a medium-term high, in which case it could provide the foundation for a short trade.
There is nothing important due today concerning the CAD. Regarding the USD, there will be a release of Building Permits data at 1:30pm London time.