Yesterday’s signals were not triggered, as there was no bearish price action at either of the key resistance levels which were reached.
Today’s USD/CAD Signals
Risk 0.50% per trade.
Trades must be taken between 8am and 5pm New York time today only.
Long Trades
Long entry after the next bullish price action rejection following the next touch of 1.2787 or 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.
Short Trade
Short entry after the next bearish price action rejection following the first touch of 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
The Bank of Canada signalled yesterday that it would be less likely than was previously expected to raise its interest rate in January, and this hit the Canadian Dollar hard. This was expressed by a sharp rise in this pair that blasted right through the nearest resistance level and broke the next higher one. Both these levels are now likely to act as new support, especially the lower level at 1.2746 because it is confluent with a psychologically important price at 1.2750.
There is no long-term or even medium-term trend, but the price might have some more bullish momentum left in it for a few more hours.
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.