Yesterday’s signals were not triggered, as the resistance level at 1.2814 was not reached until after New York closed.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be taken until 5pm New York time.
Long Trade
Go long after the next bullish price action rejection – if it is very strong - following the next touch of 1.2793.
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 1.2823.
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 it was the resistance at 1.2814 which looked most interesting, and as most likely to provide a good set up today if it is rejected with a bearish reversal. However, I also saw it as quite likely that any good opportunities which might set up are likely to be in other currency pairs. I had no directional bias here. This was a good assessment of the situation and little has changed, except there is a new weak support level close to the current price, and I have moved the resistance level up by a few pips. I have no real confidence in any trade which might set up here and I would look to other currency pairs today as the action here looks thin, weak and unpredictable
There is nothing due today concerning the CAD. Regarding the USD, there will be a release of Retail Sales data at 1:30pm London time.