Yesterday’s signals were not triggered as there was insufficiently bearish price action at either of the key resistance levels identified.
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 1.3373.
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 1.3450.
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
This pair enjoyed a reasonably strong bullish breakout from a consolidating triangle, powering up past two former resistance levels. This was due more to weakness in the Canadian Dollar than strength in the U.S. Dollar. There is not really any true long-term trend in this pair, so despite the bullishness the resistance at 1.3450 may be an attractive level at which to find a short trade. There are probably going to be better opportunities in other currency pairs.
There is nothing due today regarding the CAD. Concerning the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time.