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 must be taken from 8am London time until 5pm New York time, over the next 24-hour period only.
Long Trade
Long entry after the next bullish price action rejection following the next touch of 1.3254.
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 Trade
Short entry after the next strongly bearish price action rejection following the next touch of 1.3362.
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 although there had been a nice strong bullish trend here over the past few weeks, and although it isn’t necessarily done yet and is likely to give some more long pips, it is clear that the momentum has slowed down to the point where the price is almost ranging over the short term. I think this was a good call as yesterday we did see a range between the levels. The fact that the price action looks even flatter suggests we are seeing an increasing exhaustion of momentum, which makes a break below the support at 1.3254 more likely. However, that is likely to be a strong support level as it is confluent with 1.3250, and due to the strength of the recent bullish move, so I still think a bullish bounce there is likely if it is reached soon. I have a weak bullish bias above 1.3254.
There is nothing important due today concerning the CAD. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time.