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 from 8am London time to 5pm New York time today only.
Long Trade
Long entry after the next bullish price action rejection following the next touch of 1.2641 or 1.2590.
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 the first touch of 1.2746, 1.2787, or 1.2846.
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 was incorrect to see the price as turning a little bullish yesterday, in fact the short-term downwards movement seems to be sticking and there is some follow-through momentum. The price is now close to the support level at 1.2641 where it might turn around. There is no long-term trend and therefore it is best to trade this pair, if you are going to trade it, by paying attention to news items and short-term reversals off key support and resistance levels. The price could go anywhere and is difficult to predict in the absence of a trend.
Regarding the CAD, there will be a release of Trade Balance data at 1:30pm London time. Concerning the USD, there will be a release of ISM Non-Manufacturing PMI data at 3pm.