Yesterday’s signals were not triggered as there was no bullish price action at either 1.3423 or 1.3356.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be taken between 8am and 5pm New York time today.
Long Trade 1
Long entry after the next bullish price action rejection following a first touch of 1.3210.
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 entry into the zone between 1.3399 and 1.3423.
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
This pair went through a reasonably sharp fall as the USD sold off, but the CAD has been one of the weakest currencies for a while as Crude Oil has continued to drop which tends to lead its value. This means that a bullish recovery looks more likely here than in most other currency pairs. However, the price now is in a no-man’s land, quite far from either key support or resistance, so the short-term twists and turns may be very unpredictable for a while.
There is nothing due today regarding the CAD. Concerning the USD, there will be releases of Building Permits, Philly Fed Manufacturing Index, and Unemployment Claims data at 12:30pm London time.