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 must be entered before 5pm New York time today only.
Short Trade
Short entry after the next bearish price action rejection following the next touch of 1.3464.
Put the stop loss 1 pip above the local swing high.
Move 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
Long entry after the next bullish price action rejection following the next touch of 1.3261.
Put the stop loss 1 pip below the local swing low.
Move 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 the chart still looked strange and beyond noting the short-term bullish momentum, there was little to say here. I would not trade this pair, but I thought that the price was slightly more likely to rise today than to fall.
This wasn’t a bad call as the price has held up although it is slightly lower than it was this time yesterday, at the time of writing. The most interesting feature is the cluster of resistance levels around the psychologically important level of 1.3500, which could provide an interesting short trade opportunity if reached. I have no directional bias here, as although the U.S. Dollar is broadly strong, it has been unable to rise any more against the Canadian Dollar. There are likely to be better opportunities elsewhere today.
There is nothing important due today concerning the CAD. Regarding the USD, there will be a release of CPI data at 1:30pm London time.