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 may only be taken between 8am London time and 5pm New York time today.
· Go long 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.
· 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.
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 strong breakout beyond 1.2900 was still more likely to happen later in the week than today. We have seen the price again test the level before moving back down into a price zone in which has spent a lot of time during recent days, between 1.2840 and 1.2880. There is no change to the technical picture: a consolidation / bullish flag pattern within an uptrend. A strong break above 1.2900 should see a movement up to 1.3000, but a break below 1.2840 should see the price make 1.2800 quickly.
There is nothing important due today concerning the CAD. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time.