Yesterday’s signals were not triggered as neither of the key levels were ever reached.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be taken between 8am London time and 5pm New York time today.
Long Trades
* Long entry after the next bullish price action rejection following a first touch of 1.3404 or 1.3359.
* 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 touch of 1.3482.
* 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
The picture is still bullish, and we have printed a new supportive level just above the round number at 1.3400, although it looks weak so I am not very confident in it. The bullishness has weakened and the price as shown on the chart below looks as if it may be topping below the previous swing high at 1.3455. There is a long-term bearish trend line just above the psychologically important 1.3500 area.
There is nothing due today regarding the CAD. Concerning the USD, there will be a release of Unemployment Claims data 1:30pm London time.