Yesterday’s signals may have produced a losing long trade from the bullish bounce at the support level of 1.3168. The level has continued to hold as good support.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be taken before 5pm London time today.
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.
Long Trades
Long entry after the next strongly bullish price action rejection following the next touch of 1.3168 or 1.3089.
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 would be bullish today above 1.3168, although it did seem as if the round number at 1.3200 might halt any further advance for a while. This was a good call as the level held. But was not able to breach 1.3200.
If the price is not able to get established above 1.3200 during the New York session, it will probably break below 1.3168 and fall further. Much will depend upon the non-farm payrolls forecast due later.
There is nothing important due today concerning the CAD. Regarding the USD, there will be a release of ADP Non-Farm Employment Change data at 1:15pm London time, followed by ISM Non-Manufacturing PMI at 3pm, and Crude Oil Inventories at 4pm.