By: DailyForex.com
Yesterday’s signals were not triggered, as none of the key levels were reached.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be taken between 8am London time and 5pm New York time today.
Long Trade
* Long entry after the next bullish price action rejection following the next touch of 1.2750.
* 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
I wrote yesterday that the longer the price fails to truly rise to new highs, the more longer-term charts suggest we are seeing a wider bearish turn in the price. For that reason, I thought a break below 1.2814, if it holds, would be significant for this pair. The price has continued to hold above that level, but it is looking increasingly heavy and likely to break down, which is why I do not give the level as good support even though it is marked in the price chart below. Apart from that, there is no change to the technical picture. I have a bearish bias below 1.2814.
Although we are seeing a strong U.S. Dollar, if there is geopolitical disruption in the Gulf region over the coming weeks, we are likely to see the price of Crude Oil rise strongly, which should give the Canadian Dollar a boost.
There is nothing due today concerning the CAD. Regarding the USD, there will be a release the ADP Non-Farm Employment Change forecast at 1:15pm London time, followed by Crude Oil Inventories at 3pm and the FOMC Statement and Federal Funds Rate at 7pm