Yesterday’s signals were not triggered as there was no bullish price action at 1.2658.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be entered from 8am and 5pm New York time today only.
Long Trade 1
- Long entry after the next bullish price action rejection following a first touch of 1.2541.
- 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
- Short entry after the next bearish price action rejection following a first touch of 1.2630 or 1.2658.
- 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
Yesterday’s FOMC release accelerated the fall in this pair, which had already been underway, after topping out at the resistance level of 1.2774. The move is in the direction of the long-term bearish trend, so it is not a great surprise. The fall pushed the price through a supportive area, and it looks as if we now have a zone of new resistance above from about 1.2630 to 1.2658. There are initial signs that the round number at 1.2600 has halted the downwards move, so if we now go on to retest 1.2630 this should show whether the push down has another leg left. A break above 1.2658 would suggest a period of consolidation ahead.
There is nothing due today concerning the CAD. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time.