Yesterday’s signals were not triggered, as there was no bullish price action at 1.3100.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be taken before 5pm New York time, during the next 24-hour period only.
Long Trade
Go long after the next bullish price action rejection following the next touch of 1.3000.
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 I expected ranging conditions to continue between 1.3100 and 1.3280. I saw little opportunity here, except fading reversals at these extreme levels, and I had no directional bias. I was wrong, as we in fact saw a lot of movement here, with the price breaking quite strongly below support at 1.3100 and it is now in sight of the big round number at 1.3000. I have a weakly bearish bias today above 1.3000. If that level is reached, it could provide a long or at least medium-term low price which would be good for a long trade entry if it happens.
There is nothing important due today concerning the CAD. Regarding the USD, there will be a release of Core Durable Goods Orders at 1:30pm London time.