Yesterday’s signals were not triggered as there was no bearish price action at 1.3215.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be entered between 8am London time and 5pm New York time today only.
Long Trades
Go long after the next bullish price action rejection following a first touch of 1.3284 or 1.3200.
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 1.3398.
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
I wrote yesterday that if the USD was boosted by President Trump’s speech during the Asian session, it could be felt strongly here with another big upwards movement. The USD got a boost from another source, but it was indeed felt here very strongly with another firm push up and the breach of another resistance level. Below, 1.3200 looks very attractive as new support, and there is a more questionable support level above that at 1.3284.
The outlook is bullish but there is major Canadian news due later which could have an opposite effect.
Concerning the CAD, there will be the Bank of Canada’s Rate Statement and Overnight Rate release at 3pm London time. Regarding the USD, there will be a release of ISM Manufacturing PMI data also at 3pm, followed by Crude Oil Inventories at 3:30pm.