Yesterday’s signals were not triggered, as there was insufficiently bearish price action at 1.3160.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be taken between 8am London time and 5pm New York time, during the next 24-hour period only.
Long Trades
Go long after the next bullish price action rejection following the next touch of 1.3160 or 1.3100.
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 1.3281.
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 due to the medium-term strongly ranging conditions, fading price extremes in either direction was likely to be the best approach, as I had no directional bias. The technical picture has changed a little, with the level at 1.3160 being pivotal and clearly flipping from resistance to support. This suggests it makes sense to take a weakly bullish bias and be looking to trade any continuing rise back up to the area of resistance capped at 1.3281.
There is nothing important due today concerning either the CAD or the USD.