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 New York time, over the next 24-hour period.
Long Trade
Long entry 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
Short entry 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 it looked as if the price will move downwards during the London session. I was wrong, it rose a little, but hardly at all. This pair has broken down from its earlier upwards trend and now looks as if it is going to range aimlessly. We are a long way from either support or resistance. For these reasons, trading this pair is probably going to be best avoided today.
There is nothing important due today concerning either the CAD or the USD.