Yesterday’s signals were not triggered, as the level at 1.2697 was not rejected before 5pm New York time.
Today’s USD/CAD Signals
Risk 0.50% per trade.
Trades may only be taken between 8am and 5pm New York time today.
Long Trades
Go long after the next bullish price action rejection following the next touch of 1.2630 or 1.2605.
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.
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.
Short Trades
Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2697, 1.2785, or 1.2840.
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
Yesterday I took a bullish bias, and this has worked out quite well. The price has now invalidated the former resistance level at 1.2697 and has room to rise higher still, if the U.S. Dollar continues to advance generally. The post-FOMC also printed a new support level when it used former resistance at 1.2630 as a low. There is not a lot more worth saying, except it should be noted that this pair is not in any kind of long-term trend, in fact the situation is the complete opposite, and that there is a key Canadian data item due later today which might push the price in an unexpected direction.
Concerning the CAD, there will be a release of Core Retail Sales data at 1:30pm London time. Regarding the USD, there will be a release of Crude Oil Inventories data at 4pm.