Yesterday’s signals produced a long trade from the bullish bounce at the support level of 1.2814. The outcome of this trade still seems very uncertain, so it may be wise to exit in profit before the major news releases due later.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be taken before 5pm New York time today.
Long Trade
Go long after the next bullish price action rejection following the next touch of 1.2750.
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 Trade
Go short after the next bearish price action rejection following the next touch of 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 was uncertain about price direction yesterday and that seems to have been a correct approach. It is interesting that the support at 1.2814 has continued to hold, yet 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 think a break below 1.2814, if it holds, will be significant for this pair. 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. 
As for today’s outlook, there are important data items for both currencies, so price movement is unpredictable.Concerning the CAD, there will be a release of GDP data at 1:30am London time. Regarding the USD, there will be a release of ISM Manufacturing PMI data at 3pm.