Yesterday’s signals were not triggered, as none of the key levels were ever reached.
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
Go long after the next bullish price action rejection following the next touch of 1.2785 or 1.2732.
Place 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 ride.
Short Trades
Go short after the next bearish price action rejection following the next touch of 1.2946 or 1.2971.
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.
Remove 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 took a bearish bias yesterday above 1.2785. This did not work out very well, as the price has turned around and started to move up a little without touching the level 1.2785. There is weak, short-term bullish momentum, but the price is truly ranging in the middle of a zone between the two nearest support and resistance levels. It therefore looks as if this pair is probably going to be worth avoiding today until it gets more direction. The best possible opportunity is likely to be a spike and rejection at one of the levels following the Final GDP data release later.
There is nothing due today concerning the CAD. Regarding the USD, there will be a release of Final GDP data at 12:30pm London time, followed by Crude Oil Inventories at 2:30pm.