Yesterday’s signals were not triggered, as none of the key levels were reached during the specified times.
Today’s USD/CAD Signals
Risk 0.50% per trade.
Trades must be taken before 5pm New York time today only.
Long Trade 1
Long entry after the next bullish price action rejection following a first touch of 1.2693.
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
Short entry after the next bearish price action rejection following a first touch of 1.2746 or 1.2800.
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 was correct yesterday to be cautious of a short at the new resistance level at 1.2693 as London opened. The price broke above it bullishly and continued to advance steadily all day, flipping the level from resistance to probable support. Recent hours have seen the price reach the next resistance level at 1.2746 where it may be reversing. If today’s London open does not invalidate the level, the price is most likely to begin a downwards movement.
There is no clear trend and overall there are probably going to be better opportunities in other currency pairs elsewhere today.
There is nothing important due today concerning the CAD. Regarding the USD, there will be a release of PPI data at 1:30pm London time.