Yesterday’s signals were not triggered, as there was no bearish price action when the price reached 1.2256.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be entered between 8am London time and 5pm New York time today only.
Long Trades
- Long entry after the next bullish price action rejection following a first touch of 1.2278 or 1.2256.
- 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 1.2340.
- 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
Surprisingly, this pair made a fairly strong upwards movement yesterday, breaking cleanly up past resistance, which now looks to have flipped to become support. Note how the anticipated level at 1.2340 held just above the limit of the upwards move. This is a healthy sign for that level which we can expect should have an effect when the price next gets there. This move is counter-trend, but the FOMC release tomorrow will probably have a strong impact upon this pair, so medium-term direction is impossible to foresee. In the meantime, both the support and resistance levels are likely to hold.
There is nothing due today concerning the CAD. Regarding the USD, there will be a release of Building Permits at 1:30pm London time.