Yesterday’s signals were not triggered, as there was no bullish price action at 1.2914.
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 1.2900 or 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 wrote yesterday that the short-term action looked bearish, with the price looking quite likely to invalidate and break below the support level at 1.2914. This did happen, but the price only got as low as the round number at 1.2900, which is the relevant new nearby support. It looks a little stronger. I saw the best likely strategy here as playing the range, looking for longs at 1.2826 and shorts at 1.3047. This still looks attractive but a long from a bullish bounce at 1.2900 might also be interesting. I have a very weak bullish bias above 1.2900.
There is nothing due today concerning the CAD. Regarding the USD, there will be a release of ISM Non-Manufacturing PMI data at 3pm London time.