Yesterday’s signals were not triggered as the bullish price action took place some way below 1.3284.
Today’s USD/CAD Signals
Risk 0.50% per trade.
Trades must be entered before 5pm New York time today only.
Long Trade 1
Go long after the next bullish price action rejection following a first touch of 1.3210.
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 Trades
Go short after the next bearish price action rejection following a first touch of 1.3268 or 1.3359.
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 picture continues to become more bearish, with the price turning decisively downwards and flipping support to resistance. There is no long-term trend and reversals from key levels are difficult to trade with this pair, so there are likely to be better opportunities elsewhere.
Regarding the CAD, there will be a release of Manufacturing Sales data at 1:30pm London time, concurrently with U.S. PPI and Unemployment Claims data, followed by Preliminary UoM Consumer Sentiment number at 3pm. The Governor of the Bank of Canada will be testifying before Parliament at 3:30pm.