Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be entered from 8am London time until 5pm New York time today.
Protect any open trade by 6:30pm.
Long Trades
Go long 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.
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.
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
My bullish bias has proven to be correct, with the price moving higher still, although it has now pulled back from yesterday’s high. Unfortunately, the price did not retreat to the supportive area identified at 1.2805 yet. The supportive zones and levels could very likely be reached later towards the FOMC releases, when they would be likely to provide a good long trade entry if the FOMC hikes rates as is widely expected. There is some nice bullish momentum in this pair, and it is currently supported by fundamental as well as technical factors.
There is nothing important due today concerning the CAD. Regarding the USD, there will be a release of CPI data at 1:30pm London time, followed by Crude Oil Inventories at 3:30pm, and FOMC economic projections, Statement, and the Federal Funds Rate at 7pm. Finally, the FOMC Press Conference will begin half an hour later.