Yesterday’s signals were not triggered, as there was no bullish price action at 1.3160.
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.
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 1.3281.
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 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 the CAD. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time.