Yesterday’s signals were not triggered, as the bearish price action took place above 1.2823.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be entered between 8am London time and 5pm New York time only.
Long Trade
Long entry after the next bullish price action rejection following the next touch of 1.2793.
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 1.2914 or 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 action here looked thin, weak and unpredictable. There was a strong move up which I did not see coming at all, which was halted close to the resistance level at 1.2914. This pair remains unpredictable and may be finding some support at the time of writing at about 1.2850. The U.S. Dollar is in a long-term bullish trend, so I am generally more comfortable taking long trades. However, I am not comfortable anticipating any direction today. The best approach will probably be to trade rejections of key levels after extreme movements of the price, with a long bias.
There is nothing due today concerning the CAD. Regarding the USD, there will be a release of Building Permits data at 1:30pm London time followed by Crude Oil Inventories data at 3:30pm.