Yesterday’s signals were not triggered as there was no bearish price action at 1.2702.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm New York time today only.
Long Trade 1
· Long entry after the next bullish price action rejection following a first touch of 1.2620.
· 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
· Short entry after the next bearish price action rejection following a first touch of 1.2774.
· 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
I wrote yesterday that a break now above the 1.2700 area would be a very bullish sign, and this is what has happened. The price continues to rise and rise due primarily to a strong U.S. Dollar, but the Canadian Dollar has also been relatively weak over the short-term. This has been one of the best pairs to use to take advantage of U.S. Dollar strength. There is some distance to run to the next resistance level, so the price looks set to continue to rise further, to at least 1.2775.
There is nothing due today concerning the CAD. Regarding the USD, there will be releases of PPI and Unemployment Claims data at 1:30pm London time.