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 today only.
Long Trade
Go long after the next bullish price action rejection following the next touch of 1.2826.
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 Trades
Go short after the next strongly bearish price action rejection following the next touch of 1.3085 or 1.3136.
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 a break below 1.3000 could trigger a sharp downwards movement as there are no support levels for about 175 pips below that. I would have had a bearish bias if the price could get established below 1.3000. The price has fallen a little over the past 24 hours as the 1.3000 support level broke down gently and has become invalidated. However, the price has not really got comfortable below 1.3000 yet which should suggest some caution to bears. It does look as if a move down is more likely now, and there is a lot of room for the price to fall before reaching support, so I still have a bearish bias below 1.3000.
There is nothing important due today concerning either the CAD or the USD.