Yesterday’s signals were not triggered, as unfortunately the high of the day was just two or three pips short of the key resistance level identified yesterday at 1.2946.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be taken before 5pm New York time today only.
Long Trade
· Long entry after the next bullish price action rejection following the next touch of 1.2785.
· 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 Trades
· 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
The price has continued to consolidate within the range I identified in yesterday’s signal, topping just below the key resistance. This consolidation has gone on for a relatively long time, so an eventual breakout could be strong. There is no change to the technical picture. I have no directional bias, so I would be interested in any rejection of either support or resistance. There are initial signs that the price is starting to make a more convincing downwards movement, at least over the short term.
There is nothing due today concerning either the CAD or the USD.