Yesterday’s signals were not triggered as there was no bearish price action at 1.3423.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm New York time today.
Protect any open trade by 6:30pm London time.
Long Trades
* Go long after the next bullish price action rejection following a first touch of 1.3359 or 1.3284.
* 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 touch of 1.3482.
* 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
The new bullish move continued in the few hours following the London Open yesterday, breaking up past another former resistance level and invalidating it, although later the price fell again to come back to where it started.
The technical picture has opened, with a medium-term bullish trend now in force.
Bulls should beware the long-term trend line currently sitting just above the psychologically key level of 1.3500.
There is nothing due today regarding the CAD. Concerning the USD, there will be a release of the ADP Non-Farm Employment Change forecast at 1:15pm London time, followed at 3pm by ISM Non-Manufacturing PMI and Crude Oil Inventories half an hour later. Finally, and most importantly, there will be a release of the FOMC Meeting Minutes at 7pm.