Yesterday’s signals were not triggered, as there was no bullish price action at 1.3261.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be taken before 5pm New York time today.
Long Trade
Long entry after the next bullish price action rejection following the next touch of 1.3214.
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.
Short Trades
Short entry after the next bullish price action rejection following the next touch of 1.3261.
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.
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 I would like to be bearish, but the momentum was slowing and there was key Canadian data due later which made short-term price movements unpredictable. It may be that if the data is strong, the price would make another healthy fall.
I was ready to take a bearish bias if there is a strong reversal at any of the identified resistance levels after the data release, but that did not happen.
I was correct to be looking in the bearish direction, although there was nothing to trigger that move, just a continuation of the rise in Crude Oil and risk sentiment in markets generally, which sent the price below the next support level.
I would take a weakly bearish bias on this pair, but we have central bank input from the Bank of Canada due later as well as an FOMC release so predicting today’s most probable movement is impossible. The best that can be said technically is that if the nearest support level is broken, the price can fall significantly further before reaching any more support.
Regarding the CAD, the Bank of Canada will be releasing its Monetary Policy Report, Rate Statement, and Overnight Rate at 3pm London time, followed 15 minutes later by the usual press conference. Regarding the USD, there will be a release of the FOMC Meeting Minutes at 7pm.