Yesterday’s signals were not triggered, as neither of the support levels were reached.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be taken from 8am to 5pm New York time today only.
Long Trades
Go long after the next bullish price action rejection following the next touch of 1.3565 or 1.3529.
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 a strong bullish bounce at 1.3565 could be a long trade opportunity. I was ready to be bullish if there had been a strong bounce at that level. This was a good call as there was a strong bounce just a few pips above that level, so the idea was correct.
There is a long-term bullish trend in this pair caused by the weakness of Crude Oil impacting the Canadian Dollar, but it seems that the trend is running out of bullish momentum with the price peaking at highs close to 1.3660 four or five times now. However, until the price breaks below the lower support level at 1.3529, it would be wise not to become bearish to any extent on this pair. As long as 1.3565 holds, it makes sense to be cautiously bullish. I would be bullish after a strong bounce at that level, or until the price breaks above the highs and holds there for a couple of hours.
There is nothing of high importance due today concerning the CAD. Regarding the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time.