Yesterday’s signals may have produced a short trade following the bearish rejection of the resistance level at 1.3362. It would probably be wise to exit such a trade now even at little profit.
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 1.3254 or 1.3142.
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.
Remove 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 strongly bearish price action rejection following the next touch of 1.3362 or 1.3464.
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.
Remove 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
This pair had made a strongly bullish move but has flattened out over recent days. However, the gains made by the U.S. Dollar yesterday did briefly push the price up enough to hit the nearest resistance level. It is interesting that even at a time of a strong Dollar, its gains against the Canadian Dollar were less than they were against currencies such as the Euro, and that suggests that the Canadian Dollar has become less weak and therefore less attractive to trade against.
I maintain a weakly bullish bias above 1.3254, although the U.S. data due later could push the price strongly in either direction.
There is nothing important due today concerning the CAD. Regarding the USD, there will be a release of Final GDP data at 1:30pm London time.