Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be taken before 5pm New York time, over the next 24-hour period only.
Long Trade
Long entry after the next bullish price action rejection following the next touch of 1.2826.
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 Trade
Short entry after the next bearish price action rejection following the next touch of 1.3047.
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 have been writing for a few days that playing the range will most probably continue to be the best strategy available, looking for longs at 1.2826 and shorts at 1.3047. This continues to work out well and the price chart below shows how the price has remained trapped within this range for several consecutive days. However, I do see a greater potential for a strong directional move up than down once the price finally manages to break out of this range, as longer-term charts are getting bullish. If the price can convincingly break above 1.3050 it could go much further, and it might happen at some point this week, so a bullish breakout play with high reward to risk could make sense. I have a bullish bias above 1.3050 but this is unlikely to happen before the FOMC release tomorrow.
There is nothing due today concerning the CAD. Regarding the USD, there will be a release of CPI data at 1:30pm London time.