Yesterday’s signals were not triggered, as there was no bearish price action at either 1.3041 or 1.3085.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be taken between 8am London time and 5pm New York time today.
Long Trades
Long entry after the next bullish price action rejection following the next touch of 1.3040 or 1.2996.
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 Trades
Short entry after the next strongly bearish price action rejection following the next touch of 1.3085 or 1.3136.
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 I had a bearish bias below 1.3000, with new resistance just under that price looking very attractive for a potential short trade entry. I was completely wrong, as there was a very surprising bullish turn which was strong and dramatic, pushing the price well out of its medium-term bearish price channel, as shown in the chart below. This is a significant bullish development which really changes the technical picture and makes the outlook considerably more bullish. The support level at 1.3040 looks especially solid, and if it continues to hold up, will probably the foundation of a more extended bullish movement.
There is nothing important due today concerning the CAD. Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time.