Yesterday’s signals could have given a short trade at 1.2746, but most would probably have interpreted the action as insufficiently bearish.
Today’s USD/CAD Signals
Risk 0.50% per trade.
Trades may only be entered between 8am London time and 5pm New York time today.
Long Trade 1
Go long after the next bullish price action rejection following a first touch of 1.2693.
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
Go short after the next bearish price action rejection following a first touch of 1.2800.
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
We saw some volatility yesterday around the former resistance level at 1.2746 which has now been invalidated, and so removed from the price chart shown below. However, the price still looks to be following a bearish pattern and so is a little more likely to continue downwards to at least the support level at 1.2693 than to rise.
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 CPI and Retail Sales data at 1:30pm London time, followed by Crude Oil Inventories at 3:30pm.