Yesterday’s signals were not triggered, as none of the key levels were reached within the specified time.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be taken between 8am London time and 5pm New York time today only.
Short Trade
Go short after the next strongly bearish price action rejection following the next touch of 1.2974.
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 Trade
Go long after the next strongly bullish price action rejection following the next touch of 1.2750.
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 as the price has continued to trade sideways with low volatility, so this pair was probably best avoided yesterday. I had no directional bias. This was a good call as although there was some direction in this pair yesterday, movements were much stronger in the major pairs. We saw a strong rise in the U.S. Dollar against almost every other currency, and the Canadian Dollar was no exception, despite the relative strength of Crude Oil. The price is now sitting right at the resistance level of 1.2884 and this level might hold but I do not want to give it as a level to trade off today as the price is just too close to it at the time of writing. This leaves the nearest support and resistance levels very far away, so the only useful thing I can say about this pair is that if 1.2884 holds for several hours we may then see a move down, but it might not be wise to trade against the U.S. Dollar today when there is are strong trends in its favour on all time frames.
There is nothing important due today concerning either the CAD or the USD.