Last Thursday’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 must be taken before 5pm New York time today only.
Short Trade
Go short after the next bearish price action rejection following the next touch of 1.3117.
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 bullish price action rejection following the next touch of 1.2962.
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 last Thursday that the problem with trading this pair was that it has been ranging sideways for a long time and was far from any obvious support or resistance level in either direction, which made trading this pair quite dangerous. I wanted to stay away from trading this pair.
There is a little more clarity now as there is a new resistance level emerging at 1.3117. However, the chart below shows just how weak and indecisive price movement has been lately, despite strong moves in Crude Oil, so any opportunities are still likely to be in other currency pairs. Still, a short trade off 1.3117 could be interesting later if it sets up. There is no real long-term trend here or even a short-term one though so be very careful.
Concerning the CAD, the Governor of the Bank of Canada will be giving a minor speech at 1:10pm London time. Regarding the USD, there will be a release of ISM Non-Manufacturing PMI data at 3pm.