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 entered before 5pm New York time today only.
Long Trades
Long entry after the next bullish price action rejection following the next touch of 1.3053 or 1.2996.
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.
Take off 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
Short entry after the next strongly bearish price action rejection following the next touch of 1.3281.
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.
Take off 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
I wrote yesterday that I remained uncertain on this pair and thought it best avoided by traders over the short-term.
Things still look a little messy, but the picture is increasingly bullish, with new higher support at 1.3114. This looks likely to be the day’s pivotal level. I will take a bullish bias if the price remains above this level as the New York session gets underway, but I would not be bearish below it.
There is a slow but real long-term bullish trend, which should give bulls more confidence when there is short-term bullish momentum.
There is nothing important due today concerning either the CAD or the USD.