Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s USD/CAD Signals
Risk 0.50% per trade.
Trades may only be taken before 5pm New York time today.
Long Trade 1
- Go long after the next bullish price action rejection following a first touch of 1.2314.
- 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 1.2448 or 1.2491.
- 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 wrote yesterday that the price is in a channel which is about as even as this pair’s channels ever get, so the upwards movement looks set to continue in the meantime. The price has continued to move up over the past 24 hours, and there is no change to the technical picture except a new higher support level at 1.2314, so that looks set to continue over the short term. The U.S. Dollar has strengthened due to the Korean tensions, which is helping the rise. I maintain a short-term bullish bias, and a bullish bounce off 1.2314 and the trend line shown just below that at the same time would indicate an attractive potential long trade entry.
There is nothing due today concerning the CAD. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time, followed by the Chair of the Federal Reserve speaking at 5:45pm.