Yesterday’s signals were not triggered, as there was insufficiently bearish price action on the H1 time frame when the price rejected the resistance level at 1.3047.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm New York time, over the next 24-hour period only.
Long Trades
Go long after the next bullish price action rejection following the next touch of 1.2946 or 1.2914.
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 1.3047 or 1.3141.
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 I had no directional bias and that over the short-term 1.3000 may hold but I thought it would be broken again within the next few days. In fact, the price continued to rise as the U.S. Dollar strength persisted yesterday, although it is notable that the greenback’s advance here was much more muted than it was against other currencies, with the rise held quite easily and convincingly at the next resistance level of 1.3047. The Canadian Dollar is not falling further as we see Crude Oil flattening out and not falling any further either. I still have no directional bias, however there are major data releases for both currencies due during the forthcoming New York session which could produce a clearer picture and a bigger move. It is probably wise to stand aside in the meantime.
Regarding the USD, there will be a release of ADP Non-Farm Employment Change data at 1:15pm London time. Concerning the CAD, there will be a release of the Bank of Canada’s Rate Statement and Overnight Rate at 3pm.