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 taken before 5pm London time, during the next 24-hour period.
Long Trade
Go long after the next bullish price action rejection following the next touch of 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
Go short after the next strongly bearish price action rejection following the next touch of 1.3274.
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 the price was going to move aimlessly but instead it moved down slowly. The price is still a long way from any support or resistance, but the action does look bearish, so I would take a bearish bias today. However, as this pair is heavily reliant upon the U.S. trading session and the U.S. is on holiday today, there probably will not be much movement, and you are likely to be better off trading other currency pairs involving European currencies.
There is nothing important due today concerning the CAD. Regarding the USD, there will be a release of the ADP Non-Farm Employment Change at 1:15pm London time, followed by the ISM Non-Manufacturing PMI at 3pm London time. There will be a release of Crude Oil Inventories data at 4pm, and finally the FOMC Meeting Minutes at 7pm.