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 Trades
Long entry after the next bullish price action rejection following the next touch of 1.3142 or 1.3047.
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 1.3254, 1.3312, or 1.3362.
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 it would be a surprise if we did not see still higher prices over the next few days. The resistance at 1.3250 may hold the price down, at least for a while, as that is confluent with a key psychological level. I had a bullish bias today below 1.3250. This worked out OK as the price has continued to rise broadly, not by a lot, but by something. Commodity currencies are generally very weak right now, with the Canadian and Australian Dollars hit hard by the talk of new tariffs. The Australian Dollar is falling more rapidly than the Canadian Dollar.
There is no change to the technical picture, it is still broadly bullish and continuing to rise. I have a bullish bias today below 1.3250 and possibly beyond that if the action at 1.3250 isn’t bearish when it is reached.
There is nothing due concerning the CAD. Regarding the USD, there will be a release of Building Permits data at 1:30pm London time.