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 before 5pm New York time today only.
· 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 wrong yesterday in forecasting that a break below 1.2840 should see the price make 1.2800 quickly. Instead, the price in recent hours has refused to fall. The price is in a very range-bound area, making it dangerous to be short here. I think now a move up from 1.2800 or very close to it is the likely next best trade that will probably set up.
There is still 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. I have no directional bias and there is no long-term trend.
Regarding the USD, there will be a release of Final GDP data at 1:30pm London time. Concerning the CAD, there will be releases of CPI and Core Retail Sales data at the same time.