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 must be taken between 8am London time and 5pm New York time today only.
Long Trades
Long entry after the next bullish price action rejection following the next entry into the zone between 1.2805 and 1.2787, or the next touch of 1.2746.
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.
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
The more dovish approach from the Bank of Canada which became obvious last week has lifted the price, but the chart below shows a broad distributive topping formation which suggests we will now probably see a bearish retracement. This means that is makes sense to keep a bullish bias, but wait for the price to reach or at least get very close to the supportive area below which starts at 1.2805. A bullish bounce there might provide a great long trade entry opportunity. There are no obvious resistance levels before 1.3050, or at least the big psychological level at 1.3000, so there is room for the price to rise – the line of least resistance is certainly upwards.
There is no long-term trend, but I have a bullish bias, although a little less strongly than I did yesterday as the price has failed to rise.
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.