Yesterday’s signals were not triggered as there was no bullish price action when the price reached 1.3454.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be entered between 8am and 5pm New York time today.
Long Trades
* Long entry after the next bullish price action rejection following a first touch of 1.3454 or 1.3521.
* Put 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.
* Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
Short Trade 1
* Go short after the next bearish price action rejection following a first touch of 1.3588.
* Place 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.
* Take off 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
This pair is becoming interesting. It is very bullish, one of the most clearly trending currency pairs in the market. In recent hours, it has made a near 4-month high price. It is more a case of Canadian Dollar weakness than strength in the U.S. Dollar. The chart below shows a new, steeper bullish trend line which should be worth keeping an eye on. The price is in blue sky so picking a top would be very difficult but 1.3588 is a long-term swing high that has only been exceeded once over recent multi-month price history, so it would be a level to watch. I would be very cautious about taking any short trade.
There is nothing due today regarding the CAD. Concerning the USD, there will be a release of CB Consumer Confidence data at 3pm London time.