Last Monday’s signals were not triggered, as none of the key levels were hit that day.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be entered between 8am London time and 5pm New York time today only.
Long Trade
Go long after the next bullish price action rejection following the next touch of 1.3316 or 1.3284.
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.
Short Trades
Go short after the next bearish price action rejection following the next touch of 1.3367 or 1.3421.
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.
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 Monday that this pair looked awful to trade, the action was completely choppy and consolidative. I thought it was very likely to be a good idea to ignore this pair and look for potential opportunities elsewhere.
This pair is now showing more signs of life, having made an upwards movement and printing two new support levels in the process. I still see it as very difficult to predict movement in this pair, so I think there are likely to be better opportunities elsewhere. I have no directional bias here today.
There is nothing important due today regarding the USD. Concerning the CAD, there will be a release of Retail Sales data at 1:30pm London time.