Yesterday’s signals were not triggered as the bearish price action took place above the resistance level identified at 1.3482.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm New York time today.
Protect all open trades by 5:30pm.
Long Trades
* Go long after the next bullish price action rejection following a first touch of 1.3423 or 1.3356.
* 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 1.3550.
* 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 is in a long-term bullish trend with no obvious resistance before 1.3550. However, the price sells off convincingly every time it gets close to the key psychological level of 1.3500. There is still room to rise but it is beginning to look as if the line of least resistance will be downwards.
There is nothing due today regarding the CAD. Concerning the USD, there will a release of CPI and Retail Sales data at 12:30pm London time, followed by Crude Oil Inventories at 2:30pm and the FOMC Statement, Economic Projections and Federal Funds Rate at 6pm, and then the usual press conference half an hour later.