Yesterday’s signals were not triggered, as there was insufficiently bearish price action at 1.2415.
Today’s USD/CAD Signals
Risk 0.50% per trade.
Trades must be entered between 8am and 5pm New York time today only.
Long Trade
· Go long after the next bullish price action rejection following the next touch of 1.2314.
· 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
· Go short following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2513.
· 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 price reaches 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 wrote yesterday that there were some early signs that the price might be readying to move up to 1.2500 or even higher. I had more faith in 1.2513 holding than I do in 1.2415. This worked well, with 1.2415 breaking, but the price is not doing anything in recent hours to make this pair especially interesting to trade today. I have no opinion beyond saying that there are likely to be better opportunities elsewhere today.
There is nothing important due today concerning either the CAD or the USD.