Yesterday’s signals were not triggered as there was insufficiently bearish price action at 1.2541 or 1.2616 when these levels were reached.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm New York time today.
Long Trade 1
- Long entry after the next bullish price action rejection following a first touch of 1.2608.
- 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 Trade 1
- Short entry after the next bearish price action rejection following a first touch of 1.2692.
- 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 U.S. Dollar was given a strong boost yesterday by a very positive GDP number and a healthy forecast for new jobs data due to be released this Friday. The move was strongest against the Japanese Yen, but was also very strong here against the Canadian Dollar. The price broke up past the two nearest resistance levels, which have become flipped to likely support. The higher one needs to be adjusted slightly, so we can see the nearest probable price floor just above the round number at 1.2600. It looks as if the price is going to move higher over the short term, but if Friday’s data is disappointing for the greenback, that could be reversed quickly.
Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time, and a simultaneous release of Canadian GDP data regarding the CAD.