Yesterday’s signals were not triggered, as none of the key levels specified were reached.
Today’s USD/CAD Signals
Risk 0.50% per trade.
Trades must be entered between 8am and 5pm New York time today only.
Long Trades
· Go long after the next bullish price action rejection following a first touch of 1.2590 or 1.2534.
· 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 1.2692.
· 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 it made sense to keep a long bias, and the price would probably retrace over the short-term. This has been a sensible approach, but the price did little yesterday so did not provide any notable opportunity. The technical picture is unchanged, and it makes sense to continue to hold a bullish bias today. The price has plenty of room to rise before running into any obvious resistance levels. I see 1.2534 as the stronger support level, more likely to hold than 1.2590.
There is nothing significant due today concerning either the CAD or the USD.