Yesterday’s signals were not triggered, as there was insufficiently bullish price action at 1.2785.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be taken between 8am London time and 5pm New York time today.
Long Trades
Go long after the next bullish price action rejection following the next touch of 1.2732 or 1.2669.
Place the stop loss 1 pip below the local swing low.
Move the stop loss to break even once the trade is 20 pips in profit.
Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
Short Trades
Go short after the next bearish price action rejection following the next touch of 1.2820 or 1.2946.
Place the stop loss 1 pip above the local swing high.
Move the stop loss to break even once the trade is 20 pips in profit.
Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
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 there were initial signs that the price was starting to make a more convincing downwards movement. This turned out to be correct, as the price reached the nearest key support level at 1.2785. The level has now been invalidated by price action, so I look instead to 1.2732 for support now. I have no directional bias today, but it might be significant that new resistance has been formed from flipped support at 1.2820. The longer that level holds, the more bearish the picture will look. The NFP forecast release later could push the price anywhere, regardless of the technical situation, if the number is surprising.
There is nothing due today concerning the CAD. Regarding the USD, there will be a release of the ADP Non-Farm Employment Change at 1:15pm London time, followed by ISM Non-Manufacturing PMI at 3pm and Crude Oil Inventories at 3:30pm.