Yesterday’s signals were not triggered, as the bullish price action at 1.2256 was not strong enough to trigger a long trade entry.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be taken before 5pm New York time today.
Be extremely cautious entering any trades before 7pm London time.
Long Trades
- Go long after the next bullish price action rejection following a first touch of 1.2256 or 1.2200.
- 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 Trades
- Go short after the next bearish price action rejection following a first touch of 1.2340 or 1.2448.
- 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
I forecasted yesterday that support and resistance levels were likely to hold, and this was true at least for the lower of the two support levels I identified then. Price fluctuations have been small ahead of the FOMC release due later, and this is likely to continue until the releases are made, so the support at 1.2256 is likely to continue to hold for some hours. The release is likely to cause quite a lot of volatility in this pair, and it could push the price anywhere.
There is nothing due today concerning the CAD. Regarding the USD, there will be a release of the FOMC Statement, Projections, and Federal Funds Rate at 7pm London time, followed by the usual press conference. There will also be a release of Crude Oil Inventories earlier at 3:30pm.