Yesterday’s signals were not triggered, as none of the key levels were ever hit.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be entered between 8am London time and 5pm New York time, during the next 24-hour period.
Long Trade
Go long after the next bullish price action rejection following the next touch of 1.3254.
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.
Adjust 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 strongly bearish price action rejection following the next touch of 1.3362.
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.
Adjust 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
There has again been no change to the technical picture and I can say again what I said yesterday: the bullish momentum has slowed down to the point where the price is almost ranging over the short term. The fact that the price action looks even flatter yet 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 maintain my weakly bullish bias above 1.3254.
Regarding the USD, there will be a release of Core Durable Goods Orders data at 1:30pm London time, followed by Crude Oil Inventories data at 3:30pm. Concerning the CAD, the Governor of the Bank of Canada will be giving a minor speech at 8pm.