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 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 entry into the zone between 1.2709 or 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 1.2787 or 1.2860.
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 clear trend in this pair, and overall there are probably going to be better opportunities in other currency pairs. Yesterday saw the previous mildly bullish short-term trend turn bearish, and the price printed a new lower resistance level at 1.2787.
I have no directional bias. There are probably going to be better opportunities in other Forex currency pairs today. The best potential trade would probably be a long from a bullish bounce at the 1.2700 area if it happens later.
There is nothing important due today concerning the CAD. Regarding the USD, there will be releases of Core Durable Goods Orders and Unemployment Claims at 1:30pm London time, followed by Crude Oil Inventories at 5pm, and FOMC Meeting Minutes at 7pm