Yesterday’s signals were not triggered, as there was no bearish price action at 1.3254.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be entered until 5pm New York time, during the next 24-hour period.
Long Trade
Go long after the next bullish price action rejection following the next touch of 1.3254.
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 strongly bearish price action rejection following the next touch of 1.3312 or 1.3362.
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 the technical picture was still broadly bullish and continuing to rise, and that it would be a surprise if we did not see still higher prices over the next few days. This was correct as we saw the price break above the resistance level at 1.3254 early during the London session, although it has flattened out over recent hours and at the time of writing has not reached 1.3300 yet. There is something very bullish about the steady rise here though, and the way the price keeps remaining near the highs without making any deep pull-backs, so there is no reason not to remain bullish and expect a further rise to at least 1.3312 and probably beyond. I have a bullish bias and still see the Canadian Dollar as a great candidate for the short side of any Forex trade.
There is nothing due concerning the CAD. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time.