Yesterday’s signals were not triggered as none of the key levels were ever reached.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be taken before 5pm London time today.
Long Trade 1
· Go long after the next bullish price action rejection following a first touch of 1.2839.
· 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 1.3050.
· 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 done little over recent hours and focus has shifted towards other currencies. There is a long-term bearish trend. The next major developments will be driven by the releases due later today from the Bank of Canada, which could push the price anywhere.
Concerning the CAD, the Bank of Canada are releasing their Monetary Policy Report, Rate Statement, and Overnight Rate at 3pm London time, followed a little later by the usual press conference. Regarding the USD, the Chair of the Federal Reserve will be testifying before the House Financial Services Committee on monetary policy at 3pm, followed half an hour later by Crude Oil Inventories.