Yesterday’s signals were not triggered as there was insufficiently bearish price action at 1.3450.
Today’s USD/CAD Signals
Risk 0.50% per trade.
Trades may only be taken between 8am London time and 5pm New York time today.
Long Trade 1
* Long entry after the next bullish price action rejection following a first touch of 1.3450.
* 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 entry after the next bearish price action rejection following a first touch of 1.3496 or 1.3551.
* 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 has continued to move up strongly for another consecutive day and is looking increasingly interesting. It is now approaching a very crucial resistance level which is confluent with both a long-term bearish trend line and a large psychologically important round number at 1.3500, so the upwards movement could reverse here, but short traders should be very cautious as there is a lot of pressure on the Canadian Dollar as the price of Crude Oil weakens.
There is nothing due today regarding the CAD. Concerning the USD, there will be releases of Unemployment Claims and Philly Fed Manufacturing Index data at 1:30pm London time, followed later by the Treasury Secretary speaking at 6:15pm.