Yesterday’s signals were not triggered, as there was no bullish price action at 1.2946 or 1.2914.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may be entered before 5pm New York time, during the next 24-hour period only.
Long Trades
Long entry after the next bullish price action rejection following the next touch of 1.2826, 1.2793, or 1.2750.
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
Short entry after the next bearish price action rejection following the next touch of 1.2914, 1.2946, or 1.3047.
Put the stop loss 1 pip above the local swing high.
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.
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 I had no directional bias as there were major data releases for both currencies due during the forthcoming New York session which could produce a clearer picture and a bigger move. These releases were slightly bearish for the U.S Dollar and the Bank of Canada suggested future inflation would be higher than expected so that boosted the Canadian Dollar, leading to a continuation of the short-term downwards movement which had already begun. The price broke cleanly and strongly below support levels which have now probably become new resistance. It looks as if there is still short-term bearish momentum, so today I have a bearish bias above 1.2826.
Concerning the CAD, there will be a release of GDP data at 1:30pm London time. Regarding the USD, there will be a release of Crude Oil Inventories data at 4pm.