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 may only be taken between 8am London time and 5pm New York time today only.
Long Trades
Go long after the next bullish price action rejection following the next touch of 1.2605 or 1.2530.
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.
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 1.2785.
Put the stop loss 1 pip above the local swing high.
Adjust 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 a sustained break below 1.2600 would be a bearish sign, yet if it holds convincingly it might produce a long trade entry opportunity. Although the price was never quite reached, the area did provide a catalyst for a move up, which wasn’t a surprise, although the bulls may now have run out of steam. It is not marked in the price chart below, but there is minor support valid right now at 1.2670 – watch this level carefully to see if it holds. If it holds, the price should continue to rise, if not, then a trip back to 1.2600 is more likely. There is no long-term trend in this pair so there is nothing else to go on here.
There is nothing due today concerning the CAD. Regarding the USD, there will be a release of Core Durable Goods Orders and testimony before Congress by the Chair of the Federal Reserve at 1:30pm London time, followed by CB Consumer Confidence data at 3pm.