Yesterday’s signals were not triggered, as there was insufficiently bullish price action at 1.2805.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be taken between 8am London time and 5pm New York time today only.
Long Trades
Long entry after the next bullish price action rejection following the next entry into the zone between 1.2805 and 1.2787, or the next touch of 1.2746.
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.
USD/CAD Analysis
This has been a good pair to focus on, as the Canadian Dollar has remained essentially weak since the Bank of Canada’s last release, meaning the price has a bullish resilience. My bullish bias has been broadly correct. Yesterday’s FOMC release pushed the price down to the support at 1.2805, but it has been recovering and moving upwards against from there over recent hours. There is persistent bullish momentum in this pair and long trades look good. The difficulty is that there are several major central bank releases due today from European central banks which could push prices around unexpectedly, as well as key U.S. data.
I maintain my bullish bias. There is plenty of room for the price to move up before meeting any likely resistance, until 1.3000 at least.
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Regarding the USD, there will be releases of Retail Sales and Unemployment Claims data at 1:30pm London time. Concerning the CAD, the Governor of the Bank of Canada will be giving a minor speech at 5:25pm.