Yesterday’s signals were not triggered, as there was no bearish price action at 1.3052.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be entered between 8am and 5pm London time today.
Short Trades
Short entry after the next strongly bearish price action rejection following the next touch of 1.3089, or 1.3118.
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.
Long Trades
Long entry after the next strongly bullish price action rejection following the next touch of 1.3011 or 1.2962.
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.
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 would probably be difficult to trade. However, it moved up reasonably smoothly, against my expectations, before falling back. It is continuing to fall at the time of writing with some bearish short-term momentum. It is true that this pair is in a long-term consolidation, but if the support level at 1.3011 is tested again and holds, it might provide a good long trade entry. If that support survives, the medium-term picture will look more bullish.
There is nothing important due today concerning either the CAD or the USD.