Yesterday’s signals were not triggered, as there was no bullish price action at 1.2732.
Today’s USD/CAD Signals
Risk 0.50% per trade.
Trades must be taken before 5pm New York time today.
Long Trades
Long entry after the next bullish price action rejection following the next touch of 1.2669 or 1.2605.
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 1.2773.
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 wrote yesterday that this pair was best avoided, but in the end, it was a big mover over the day. The nearest support level has been broken and is likely to have become new resistance. The medium-term momentum is bearish, so it currently looks as if the best opportunities are going to be on the short side. The new strength in the Canadian Dollar is due to the strong survey data released yesterday which is seen as making a rate hike increasingly likely.
There is nothing due today concerning the CAD. Regarding the USD, there will be a release of PPI data at 1:30pm London time.