Yesterday’s signals were not triggered, as the bullish price action took place a little way below the support level identified at 1.2996.
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 1.2988.
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.
Remove 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 this pair was probably best avoided today until it gets some direction from the economic data / central bank releases later. Surprisingly, there was not a great deal of volatility in the price here over the past day despite these releases, and no real change to the technical picture apart from a readjustment to the support from 1.2996 to 1.2988.
We have an extremely weak, long-term bullish trend and a weak medium-term bearish trend. This pair is mixed up and moving erratically. There are much better opportunities in the major currency pairs which are moving with more purpose and more pips.
A break above 1.3053 might justify a mildly bullish bias if it looks strong.
There is nothing important due today concerning either the CAD or the USD.