Yesterday’s signals were not triggered, as there was no bearish price action at 1.2820.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm New York time today only.
Long Trades
· Long entry after the next bullish price action rejection following the next touch of 1.2732 or 1.2669.
· 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 1.2840.
· 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 I had no directional bias, but I thought that the new resistance at 1.2820 would be crucial in determining direction. In fact, the crucial pivotal point was a little higher, at 1.2840. The fact this level had held is a bearish sign, as is the clear but short-term bearish trend line shown in the price chart below, which is suppressing the price. On the other hand, the key psychological level of 1.2750 has supported the price with some buying, and there is key support just below that. The price looks likely to consolidate today, between the key levels. I have no directional bias.
Concerning the CAD, there will be a release of Services PMI data at 1:30pm London time. There is nothing due regarding the USD.