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 may only be taken before 5pm New York time today.
Long Trades
Go long after the next bullish price action rejection following the next touch of 1.2750 or 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 had a bullish bias which did not work out so well, with the price falling slightly over the past 24 hours. I thought that 1.2850 may be supportive but it was not. The picture looks more bearish now than it was, but the price is in the middle of a wide zone between key support and resistance levels, so it looks impossible to make a prediction as to today’s direction. The price is most likely to not move much until the release of key U.S. data later which might give it a push one way or another if the number is a surprise to the consensus forecast. I have no directional bias today and it is probably best to avoid trading this pair for now.
There is nothing due today concerning the CAD. Regarding the USD, there will be a release of Core Durable Goods Orders data at 1:30pm London time.