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 Trades
- Long entry after the next bullish price action rejection following a first touch of 1.2445 or 1.2415.
- 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 Trades
- Short entry after the next bearish price action rejection following a first touch of 1.2547 or 1.2608.
- 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
There is still no change yet in the technical picture, which shows a clear and consistent bullish channel. The price is currently sitting right on the lower channel trend line which suggests a possible long trade entry might occur very soon. I have no reason to hold anything except a bullish bias, despite the gentle sell-off over recent hours, and a strong bullish rejection of the supportive trend line and the level at 1.2445 simultaneously could be the start of a powerful bullish move. There might be a good opportunity here today, so it is worth keeping an eye on this pair.
There is nothing significant due today concerning the CAD. Regarding the USD, there will be a release of the ADP Non-Farm Employment Change Forecast at 1:15pm London time, followed by ISM Non-Manufacturing PMI at 3pm, Crude Oil Inventories half an hour later, and then finally Janet Yellen opening a conference at 8:15pm.