Yesterday’s signals were not triggered, as the bearish price action took place at 1.3184.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be taken from 8am London time to 5pm New York time today.
Short Trades
Short entry after the next bearish price action rejection following the next touch of 1.3192 or 1.3208.
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 Trade
Long entry after the next bullish price action rejection following the next touch of 1.3055.
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 there was no trend and the best I could say was that if the price broke below 1.3127 it would look like to continue to move down until it reached the support level at 1.3055. The price in fact rose as the USD made a minor recovery, but the area of resistance around the 1.3200 made itself felt and is pushing the price down now. The short-term action looks bearish now, so it would not be a surprise if the fall continued, especially as we had a major failure for the bulls just a few days ago.
There is nothing important due today concerning either the CAD or the USD.