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 entered between 8am and 5pm London time today.
Long Trades
- Go long after the next bullish price action rejection following a first touch of 1.2472, 1.2460, or 1.2424.
- Put 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 Trades
- Go short after the next bearish price action rejection following a first touch of 1.2550 or 1.2570.
- Put 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
The downwards movement has tailed off in momentum, which is not a great surprise as we are touching a key psychological level at 1.2500 as well as a cluster of supportive levels below, which is providing some support and slowing the movement. In recent hours, the price has been heading up, and it is possible that the next resistance level will be reached before the FOMC release sue later. This means it may be possible to be positioned short before the release if a high-risk strategy is what you want. The release could push the price anywhere, but I think that despite the long-term strong bearish trend, any upwards move could be just as strong as any possible downwards move.
There is nothing due today concerning the CAD. Regarding the USD, there will be a release of Crude Oil Inventories data at 3pm London time, followed by the FOMC Statement and Federal Funds Rate at 7pm.