Yesterday’s signals were not triggered, as there was no bearish price action at 1.2787.
Today’s USD/CAD Signals
Risk 0.50% per trade.
Trades may only be entered between 8am and 5pm New York time today.
Long Trades
Go long after the next bullish price action rejection following the next touch of 1.2787 or 1.2758.
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 Trade
Go short after the next bearish price action rejection following the first touch of 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
This pair rose again yesterday after finding support very close to the psychologically important level of 1.2750. The closest resistance level at 1.2787 was reached and broken quite cleanly, and then become clearly flipped to become new support. The current price action suggests a pull back, possibly to this support level. There is no long-term trend, but there is certainly a short-term bullish trend.
I have no directional bias and still see better opportunities elsewhere in the Forex market.
There is nothing important due today concerning the CAD. Regarding the USD, there will be a release of Preliminary GDP data at 1:30pm London time, and later at 3pm the Chair of the Federal Reserve will be testifying before Congress. There will be a release of Crude Oil Inventories at 3:30pm.