Last Monday’s signals were not triggered as there was insufficiently bullish price action when the price reached 1.3381 and 1.3359.
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 Trade 1
- Long entry after the next bullish price action rejection following a first touch of 1.3284.
- 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 of1.3359 or 1.3381.
- 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 notably more bearish, with the price turning decisively downwards and flipping support to resistance. A key test will be how the price reacts if it reaches the supportive trend line which is close by at the time of writing, as well as the support level at 1.3284. The big Canadian data release later makes short-term movement very unpredictable.
Regarding the CAD, the Bank of Canada will be releasing its Monetary Policy Report, Rate Statement, and Overnight Rate at 3pm London time, followed a little later by the usual Press Conference. Concerning the USD, there will be a release of Crude Oil Inventories data at 3:30pm.