Yesterday’s signals were not triggered, as there was no bullish price action at 1.3053.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm New York time today only.
Long Trade
Long entry after the next bullish price action rejection following the next touch of 1.2996.
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
Short entry after the next strongly bearish price action rejection following the next touch of 1.3053 or 1.3114.
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 the longer the price could stay above 1.3053, the more bullish I would become, but I had no directional bias here yet despite the long-term bullish trend. This was a good call as 1.3053 was the pivotal level of the day. Movement is quite restrained in this currency pair, with the real action taking place in the European currency pairs such as EUR/USD and GBP/USD. Despite the long-term weak bullish trend, the medium-term is dominated by a strongly bearish trend line which seems to be suppressing the price. I think the next key test is likely to come at 1.3000 and the reaction there should tell us something. I again take no directional bias today.
There is nothing important due today concerning either the CAD or the USD.