Yesterday’s signals were not triggered, as there was no bullish price action at 1.2952.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be entered between 8am London time and 5pm New York time today only.
Short Trades
Go short after the next strongly bearish price action rejection following the next touch of 1.3003 or 1.3089.
Put the stop loss 1 pip above the local swing high.
Adjust the stop loss to break even once the trade is 20 pips in profit.
Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.
Long Trades
Go long after the next strongly bullish price action rejection following the next touch of 1.2884 or 1.2858.
Put the stop loss 1 pip below the local swing low.
Adjust the stop loss to break even once the trade is 20 pips in profit.
Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.
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 it looked like the price was now in a box between about 1.2950 and 1.3000 and it could breakout in either direction with some momentum, so these look as if they could become interesting levels to trade off later. This wasn’t a bad approach as the price eventually broke down. There is new resistance at 1.2962 but it is truly too fresh and new to be used within the formal signals listed above. There is no long-term trend to take advantage of but there is certainly a medium-term bearish trend so a short here if the price continues to look bearish at 1.2962 could be a trading opportunity today, although watch out for the FOMC meeting minutes release later.
There is nothing important due today concerning the CAD. Regarding the USD, there will be a release of FOMC Meeting Minutes at 7pm London time.