Yesterday’s signals were not triggered, as there was no bearish price action when the price reached 1.2946.
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 Trade
* Long entry after the next bullish price action rejection following the next entry into the zone between of 1.2946 and 1.2914.
* 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 1.3000 or 1.3047.
* 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 took a bullish bias yesterday and this worked out well. I saw that the price was ready to challenge the top of a well-established range at 1.2946, and there has been a textbook “stairstep” bullish breakout, with the price now using the level as flipped support from resistance. I see there is now a zone of support starting there, and if the price dips into it to pick up some buy order, it could get the energy to rise further. Of course, there are two good resistance levels above which may halt the advance, with the round number at 1.3000 likely to be strong, and the next level above that is confluent with the half number at 1.3050. I have a bullish bias today below 1.3000.
There is nothing due today concerning the CAD. Regarding the USD, there will be a release of PPI data at 1:30pm London time, followed by Crude Oil Inventories at 3:30pm.