Yesterday’s signals were not triggered, as the bullish price action took place slightly below 1.3304.
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 Trades
Long entry after the next bullish price action rejection following the next touch of 1.3336 or 1.3304.
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 1.3375 or 1.3402.
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 the price was falling quite steadily and looked like it was about to make a break below the support at 1.3304. If the price could spend the first couple of hours of the London session below 1.3300 on healthy volatility, then I would take a bearish bias and expect to see a further fall as there is plenty of room until the next support level is reached.
This was a good call at identifying the pivotal point, as the bearish scenario did not play out with the price quickly rejecting the 1.3300 area and turning bullish, later establishing 1.3336 as new higher support.
Technically, this pair is messy and unpredictable, without any long-term trend. The standout technical feature is the resistance at 1.3375 which looks very strong, so a short from that level would probably be the best trade opportunity which could set up within the near future.
There is nothing of high importance due today concerning either the CAD or the USD.