Yesterday’s signals were not triggered, as neither of the key levels were ever reached.
Today’s USD/CAD Signals
Risk 0.50% per trade.
Trades must be entered before 5pm New York time today only.
Long Trade 1
Long entry after the next bullish price action rejection following a first touch of 1.2641.
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 wrote yesterday that it probably makes sense to take a slightly bearish bias, although I was pessimistic about any good opportunities arising here. No key levels were reached, but the direction has been bearish, and the price action has established a new, lower level of resistance at 1.2746. The price action still looks bearish, but I am not very confident that it will continue. The trends are mixed, so again, there will probably be better opportunities in other currency pairs.
There is nothing important due today concerning the CAD. Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time.