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 must be entered from 8am London time to 5pm New York time today only.
Long Trade 1
- Long entry after the next bullish price action rejection following a first touch of 1.2000.
- 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 1.2256.
- 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
We now have a second higher low, suggesting medium-term bullishness within the long-term bearish trend, but it is very weak and not convincing. This is just a period of consolidation in the middle of a range. It looks as if the best opportunities today are going to be in other pairs, with this pair being on the side-lines of the Forex market.
There is nothing due today concerning the CAD. Regarding the USD, there will be a release of CPI and Unemployment Claims data at 1:30pm London time.