Yesterday’s signals were not triggered, as there was no bearish price action at any of the resistance levels which were reached.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be taken before 5pm New York time on Thursday.
Long Trade
Long entry after the next bullish price action rejection following the next touch of 1.3422.
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 bearish price action rejection following the next touch of 1.3470 or 1.3529.
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 with the current strength of the USD and the serious weakness in the CAD, being long of this pair has been quite rewarding. Technically, the level at 1.3373 was a major swing high inflection point so if the price could get established above that today and keep trading there for a couple of hours, it would be a bullish sign. It is a true pivotal point so was a level worth watching. This was a good call as the price did breach the level clearly by the time New York opened and then the price rose quite strongly from there, with the Canadian Dollar weakening further as the Bank of Canada announced it would be leaving its interest rate unchanged.
The price is in a near 50-day bullish breakout above recent highs, and has some healthy momentum, so I would only want to look for long trades here. The Canadian Dollar, along with the Australian Dollar, is one of the weakest major currencies right now.
There is nothing of high importance due today concerning either the CAD or the USD.