Yesterday’s signals were not triggered as there was no bearish price action when the price reached 1.3077.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be taken before 5pm New York time today.
Long Trade 1
Long entry after the next bullish price action rejection following a first touch of 1.2963.
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.
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.
Short Trade 1
Short entry after the next bearish price action rejection following a first touch of 1.3121.
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
Not much happened with this pair yesterday. The price got a reasonably strong initial boost with Janet Yellen’s comments hinting that a rate hike in March was probable, but tapered off from there, although it did have the effect of invalidating the identified resistance level at 1.3077. Now the remaining structure is an embryonic bearish trend line and resistance above it at 1.3121. If the price hits both these levels quickly, the reaction should be a good hint as to the probable next short-term direction.
There are news items due for both sides of this currency pair, so anything could happen.
Concerning the CAD, there will be a release of Manufacturing Sales data at 1:30pm London time. Regarding the USD, there will be a release of CPI and Retail Sales data also at 1:30pm, followed later by the Chair of the Federal Reserve testifying before Congress at 3pm, and Crude Oil Inventories numbers half an hour afterwards.