Yesterday’s signals were not triggered, as there was insufficiently bearish price action at 1.3089.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be taken between 8am London time and 5pm New York time today.
Short Trade
- Short entry after the next strongly bearish price action rejection following the next touch of 1.3118.
- 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 Trade
- Long entry after the next strongly bullish price action rejection following the next touch of 1.3003.
- 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 if the price broke firmly below 1.3087 as the London session got underway, I would take a mildly bearish bias. Such a firm break never happened and it was a good call to see this area as the pivotal level for the day. Today, it looks as if the resistance at 1.3118 is going to be important. A failure there could trigger a stronger downwards movement, providing a short trade opportunity, while a clean break above 1.3118 would have little in the way of a further rise, giving a potential long trade opportunity. I am wary of using the support at 1.3084.
There is nothing important due today concerning either the CAD or the USD.