Yesterday’s signals were not triggered as none of the key levels were ever reached.
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 1.3290.
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
Go short 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
I wrote yesterday that we were seeing the price starting to firm up just above a key support level at 1.3290, and a bullish double bottom forming just above the round number at 1.3300. I also thought the price would rise but not break 1.3400. This was correct, of course it was a very quiet day with the price not moving much. The same conditions are prevailing and I see a test of 1.3400 as the most probable next short-term technical development.
There is nothing due today regarding the USD. Concerning the CAD, there will be a release of Core Retail Sales data at 12:30pm London time.