Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be entered between 8am and 5pm New York time, during the next 24-hour period.
Long Trades
Go long after the next bullish price action rejection following the next touch of 1.3100 or 1.3047.
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.
Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
Short Trade
Go short after the next strongly bearish price action rejection following the next touch of 1.3275.
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.
Take off 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 price had been so flat here, that it was a good idea to wait for the price to do more here before getting involved. That moment is coming closer, with the price continuing to edge down towards a long-established support level at 1.3100. A bullish reversal here could be good for a long trade. Generally, the closer to 1.3000 a bullish reversal emerges, the better chance I think it has of being a profitable trade. The areas at 1.3050 or 1.3000 are also logical places to seek a long trade if the price action is right. I have no directional bias now, as we are so close to 1.3000 at the time of writing.
There is nothing important due today concerning the CAD. Regarding the USD, the Chair of the Federal Reserve will be testifying on the Semi-annual Monetary Policy Report before Congress at 3pm London time.