Yesterday’s signals were not triggered as unfortunately the price made a high just 1 pip below the identified resistance level at 1.3121.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be entered between 8am and 5pm New York time today only.
Long Trade 1
Go long after the next bullish price action rejection following a first touch of 1.2963.
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 1.3121.
Put the stop loss 1 pip above the local swing high.
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.
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 has behaved as expected technically: a mild downwards trend with the price selling off after coming extremely close to its nearest resistance level at 1.3121. There is no change to this picture. Note the absence of a long-term trend, although that could change if the price breaks below 1.2963 – a development that would suggest the establishment of a long-term bearish trend.
There is nothing due today concerning the CAD. Regarding the USD, there will be releases of Building Permits, the Philly Fed Manufacturing Index, and Unemployment Claims data at 1:30pm London time.