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 London time today only.
Short Trade
- Go short after the next strongly bearish price action rejection following the next touch of 1.3011.
- 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.
Long Trade
- Go long after the next strongly bullish price action rejection following the next touch of 1.2826.
- 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.
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 there was not much action here in this pair, but I thought a bearish rejection of 1.3000 (a psychological level) and 1.3011 (horizontal resistance) at the same time could provide a good short trade entry if it happens. This scenario did not happen, in fact the pair has remained quiet and so there is no material change. The price action looks a little more bullish now, and that probably will not change until the FOMC releases due later. I have no directional bias on this pair today.
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, followed by the FOMC Statement, Federal Funds Rate, and Economic Projections at 7pm, and the usual press conference half an hour after that.