Yesterday’s signals were not triggered as there was an hourly close below the support level identified at 1.3290.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be entered from 8am to 5pm New York time today only.
Long Trade 1
Go long 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 Trade 1
Short entry after the next bearish price action rejection following a first entry into the zone between 1.3399 and 1.3423.
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 was wrong yesterday to expect a test of 1.3400 before 1.3290, but the technical picture has not changed despite the quick run to and strong bounce from the support at 1.3290. It is interesting that the price has not been able to reach 1.3400 yet and if this persists for another day I would start to expect a downwards movement to begin.
There is no long-term trend so trading this pair can be difficult, as the support and resistance levels tend to not hold very precisely.
There is nothing due today regarding the CAD. Concerning the USD, there will be a release of Crude Oil Inventories at 2:30pm London time.