Yesterday’s signals were not triggered, as none of the key levels were reached during the specified time.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be taken before 5pm London time today only.
Short Trades
Short entry after the next strongly bearish price action rejection following the next touch of 1.3114 or 1.3175.
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.
Long Trades
Long entry after the next strongly bullish price action rejection following the next touch of 1.3024 or 1.2998.
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.
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 was prepared to be bullish if there was a bullish bounce at 1.3025. However as both countries in this pair were on holiday, trading seemed likely to be thin and opportunities here limited. I was wrong, the price in fact moved up to the next resistance level at 1.3114 a few hours ago where it turned clearly bearish after rejecting that level.
It is difficult to say what will happen next. I would be bearish if we see a bearish retracement following by a strongly bullish reversal at 1.3050 or even the 1.3025 area. The level at 1.3050 is not clear support, but does look likely to be supportive.
There is nothing due today concerning the CAD. Regarding the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time.