Yesterday’s signals were not triggered as there was no bearish price action at 1.2840.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be taken before 5pm New York time today.
Long Trade
Go long after the next bullish price action rejection following the next touch of 1.2732.
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 Trade
Go short after the next bearish price action rejection following the next touch of 1.2946.
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 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.
USD/CAD Analysis
Yesterday I took a bullish bias. This was a good approach as the price did rise over the day, eventually invalidating the resistance level I had identified at 1.2840, which was another bullish sign. The rise has been in strong and even swings, so it still looks good for bulls. The action over recent hours is suggestive of another pull-back, which could give another bullish move if it reverses with a strong V or other bullish continuation sign. The nearest support level is some way away. I have no directional bias over the coming hours: we may well see a gently fall until the U.S. data due later which might provide a more definite direction for the greenback, and that is likely to be the key factor driving price during the New York session today.
There is nothing due today concerning the CAD. Regarding the USD, there will be a release of CB Consumer Confidence at 3pm London time.