Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be taken until 5pm New York time today.
Long Trades
· Long entry after the next bullish price action rejection following the next touch of 1.2785 or 1.2732.
· 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
· Short entry after the next bearish price action rejection following the next touch of 1.2946 or 1.2971.
· 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 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 took a bearish bias yesterday, which worked out OK. There is no change to the technical picture.
U.S. Dollar bears continue to drive the short-term momentum. The price still looks bearish and is moving down, despite the long-term bullish trend. As often happens with this pair, support and resistance levels are very flexible, but 1.2785 below does look relatively reliable. Until that level is reached or almost reached, I have a bearish bias. A short off the nearest resistance level (which is quite confluent with the half-number at 1.2950) would also look like a good trade. I maintain a bearish bias over the short term on this pair.
There is nothing due today concerning the CAD. Regarding the USD, there will be a release of CB Consumer Confidence data at 2pm London time.