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.
- 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 1.3050 or 1.3082.
- 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
The bearish outlook continues, with the price having sold off against from the 1.3000 area, which I outlined as a good potential short trade scenario yesterday. This is one of the most straightforwardly trending of all the USD currency pairs, so I again see shorts from above 1.3000 (ideally 1.3050) as the best potential trade setup.
Concerning the CAD, there will be a release of Trade Balance data at 1:30pm London time. Regarding the USD, there will be a release of the ADP Non-Farm Employment Change at 1:15pm, followed by Unemployment Claims at 1:30pm, ISM Non-Manufacturing PMI at 3pm, and Crude Oil Inventories at 5pm.