Yesterday’s signals were not triggered, as there was no suitable price action when any of the key levels were first reached.
Today’s USD/CAD Signals
Risk 0.50% per trade.
Trades must be entered between 8am London time and 5pm New York time today only.
Long Trades
Go long after the next bullish price action rejection following a first touch of 1.2774 or 1.2661.
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 1.2839.
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
Yesterday’s guidance from the Bank of Canada had the effect of weakening the Canadian Dollar, even though the U.S. Dollar was also relatively weak, so this pair continued its recent rise, making a strong and fast move which invalidated a few key levels.
There is no long-term trend, but there is a strongly bullish medium-term trend that can probably be exploited by day traders today.
There is nothing due today concerning the CAD. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time.