Yesterday’s signals were not triggered as there was no bullish price action at 1.3164.
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 1.3082.
- Place 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
- Go short after the next bearish price action rejection following a first touch of 1.3200.
- Place 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
I wrote yesterday that a break down and move to 1.3164 looked to be the most likely scenario would will play out over the next few days, and I was correct. The Canadian Dollar is very strong right now and the price is making new 4-month lows. However, the closer we get to 1.3000, the stronger the chance of a major bullish reversal, or at least an inability to fall any further.
There may also be minor resistance at 1.3150, which might produce a short trade entry opportunity.
There is nothing due today concerning the CAD. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time.