Yesterday’s signals were not triggered, as there was no bullish price action when the price reached 1.2900.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be taken from 8am London time until 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.
Move 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 a test of 1.2900 looked likely to happen soon, and if the bears could drive the price below that round number, it would be a bearish sign. This happened, but the price quickly bounced back, so this was not any use as a bearish sign. I also wrote that in the absence of a convincing long-term trend, 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. I think there will be 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 slightly bullish.
Regarding the CAD, the Governor of the Bank of Canada will be giving a minor press conference at 4:15pm London time. There is nothing due concerning the USD.