Yesterday’s signals were not triggered, as none of the key levels were reached.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be taken before 5pm New York time today.
Long Trades
Go long after the next bullish price action rejection following the next touch of 1.2814.
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 wrote last Thursday that I was taking a very cautiously bullish bias above 1.2814, and bearish below that level. I still expected it would break down soon and that we would not see 1.2946 first. I was wrong in that expectation, or it looks as if I will be wrong as the support at 1.2814 has continued to hold, but the bias I took has been the right approach.
It is interesting that even as WTI Crude Oil is hitting new 3-year high prices, the Canadian Dollar is not making an advance against the U.S. Dollar, which suggests the U.S. Dollar is very strong right now.
I maintain my bullish bias. There is no real change to the technical picture if the price remains between 1.2814 and 1.2946.
There is nothing due today concerning the CAD. Regarding the USD, the Chair of the Federal Reserve will be speaking at a conference at 8:15am London time.