Yesterday’s signals may have produced a long trade from the bullish bounce t the supportive trend line, but as it has not gone anywhere for several hours, it would probably be best to abandon the trade.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be taken until 5pm New York time today.
Long Trade 1
* Long trade after the next bullish price action rejection following a first touch of 1.3290.
* 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 Trades
* Short trade after the next bearish price action rejection following a first touch of 1.3354 or 1.3400.
* 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 still stands out as having low volatility and high relative congestion compared to most other currency pairs. The chart below still shows a very technical picture, with a bearish Quasimodo/over and under pattern moving down from the resistance which begins at 1.3400, but the supportive trend line just below the current price area may hold. There is new resistance at 1.3354 which is also becoming confluent with a resistant trend line. There are plenty of possible entries, but also every sign that price movements are not going to move far directionally so high-probability profit targets would be very conservative.
There is nothing due today regarding the CAD. Concerning the USD, there will be a release of Final GDP and Unemployment Claims data at 12:30pm London time.