Last Thursday’s signals were not triggered, as there was no bullish price action when the price reached the zone between 1.3180 and 1.3175.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be entered until 5pm New York time, over the next 24-hour period.
Long Trades
Long entry after the next bullish price action rejection following the next touch of 1.3100 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.
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 Trade
Short entry after the next strongly bearish price action rejection following the next touch of 1.3275.
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
I expected last Thursday at the London open that the price would continue to move down over the short term, and it did. The support zone at 1.3075 was an illusion, and the price easily moved below it, but it has hardly moved since then. The price is very flat, and I do not see a possibility here to predict direction. This means that it is likely that it will be best to ignore this currency pair today, with better opportunities likely to arise in EUR/USD or GBP/USD over the coming hours. We should wait for the price to do more here before getting involved.
There is nothing important due today concerning the CAD. Regarding the USD, there will be a release of Retail Sales data at 1:30pm London time.