Yesterday’s signals were not triggered as the bullish price action took place below the support level identified at 1.3675.
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 1.3675.
- 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 1.3745 or 1.3791.
- 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 price has, for another day, remained essentially contained by the nearest support and resistance levels. Despite the long-term bullish trend, I am increasingly nervous of trading this pair, as although the waves are moving cleanly, the overall action is choppy and unpredictable. There are probably better opportunities elsewhere.
Bulls and bears seem evenly balanced, and at the time of writing it looks as if the resistance level at 1.3745 is going to hold.
There is nothing scheduled concerning the CAD. Regarding the USD, there will be a release of PPI and Unemployment Claims data at 1:30pm London time.