Yesterday’s signals were not triggered, as there was insufficiently bullish price action at 1.2433.
Today’s USD/CAD Signals
Risk 0.50% per trade.
Trades may only be taken before 5pm New York time, over the next 24-hour period.
Long Trade
Go long after the next bullish price action rejection following the next touch of 1.2314.
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.
Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
Short Trades
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2433, or 1.2508.
Place the stop loss 1 pip above the local swing high.
Move the stop loss to break even once the trade is 20 pips in profit.
Remove 50% of the position as profit when the price reaches 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 wrote yesterday that this pair is boring right now. It is a little more interesting now, as we had a break below the former support level at 1.2433 which now looks to have flipped to become resistance, yet it should be noted that there is a lot of movement against the U.S. Dollar in other currency pairs such as GBP/USD and USD/JPY while this pair does not move much. In fact, the price remains contained within the first hour’s movement after last week’s rate hike by the Bank of Canada.
I have no directional bias on this currency pair and I continue to expect there will be better opportunities for traders elsewhere. Despite the bearish move, there still looks like buyers at 1.2400.
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.