Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be taken from 8am London time until 5pm New York time today.
Long Trades
Go long after the next bullish price action rejection following the next entry into the zone between 1.2802 and 1.2785, or the next entry into the zone between 1.2746 and 1.2723.
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
Despite last Thursday’s sharp drop, the support level at 1.2746 (confluent with a big psychological level at 1.2750) held after the FOMC release, and the price subsequently rose to new highs. There are two things that stand out concerning this pair: there is a medium-term bullish trend, and secondly, the price is finding it very difficult to break above 1.2900. A strong breakout beyond this level could see a fast move up to 1.3000 or 1.3050, but it is very unlikely to happen today. I think a breakout is more likely than a strong failure, so I have a medium-term bullish bias. The price still has some way to go before short trades become obvious, but failures at 1.2900 could produce some short pips.
There is nothing important due today concerning either the CAD or the USD.