Yesterday’s signals were not triggered, as neither of the key levels were ever reached.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be taken between 8am London time and 5pm New York time today.
Long Trade 1
- Go long after the next bullish price action rejection following a first touch of 1.2000.
- 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
- Go short after the next bearish price action rejection following a first touch of 1.2256.
- 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
Yesterday I saw no change to the bearish outlook, but over the course of the day the price made a steady upwards move that took out recent high prices. However, looking at the chart now, the overall bearish pattern has not been disturbed or invalidated yet, even though we do have a higher low. If the price does not begin to fall again today, and make another impulsive downwards move, the short-term trend will be called into question, but for now I maintain a bearish bias.
There is nothing due today concerning the CAD. Regarding the USD, there will be a release of PPI data at 1:30pm London time, followed by Crude Oil Inventories at 3:30pm.