Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be taken before 5pm New York time today.
Short Trade
Short entry after the next bearish price action rejection following the next touch of 1.3281.
Place 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.
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 bullish price action rejection following the next touch of 1.3212, 1.3182 or 1.3144.
Place 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.
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 saw the support at 1.3212 as still looking pivotal, and I would again take a bullish bias but only if we got a strong bullish bounce at 1.3212. The price never quite reached the level and has simply consolidated. The outlook looks a little less bullish today, but as long as the support level at 1.3212 holds, there is still hope for the bulls, and there is also a medium-term to long-term bullish trend which helps keep the odds in their favour. I would take a bullish bias today if 1.3212 holds up with a healthy bullish bounce.
There is nothing important due today concerning the CAD. Regarding the USD, there will be a release of Retail Sales data at 1:30pm London time, and the Chair of the Federal Reserve will be giving a minor speech at 4:30pm.