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 must be entered between 8am London time and 5pm New York time today only.
Long Trades
Long entry after the next bullish price action rejection following the next touch of 1.2750 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.
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
Yesterday I did not take a bullish bias despite the generally bullish situation, as I thought the price action was suggesting a bearish retracement. I was correct, although the retracement was very small, and in recent hours the price has risen again. The picture looks a little less bullish than it did, but it is still bullish. The round number at 1.2800 looks as if it could be supportive, and we also saw clear buying off 1.2750. There is plenty of room for the price to rise until it hits the next resistance level. Conditions are positive for the U.S. Dollar, so I have a bullish bias today, especially once the price can break above 1.2850.
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Regarding the USD, there will be a release of Crude Oil Inventories at 3:30pm London time. Concerning the CAD, the Governor of the Bank of Canada will begin testifying before the Canadian Parliament at 9:15pm.