Yesterday’s signals were not triggered, as there was no bearish price action at 1.3011.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be entered before 5pm New York time today.
Short Trade
Short entry after the next strongly bearish price action rejection following the next touch of 1.3089.
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 1.2969.
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 the price action looked a little more bullish now, and that probably would not change until the FOMC releases due later. I had no directional bias on this pair.
I was correct to note the increasing bullishness, but I underestimated it, and it made its impact felt even before the FOMC releases. We now see the price continuing to move up with strong momentum after breaking above the former resistance level at 1.3011. This is a bullish sign and I take a bullish bias today, although there is major U.S. data again later today which could easily change that situation, so be careful with timing.
Regarding the USD, there will be releases of Core Durable Goods Orders and Final GDP data at 1:30pm London time. There is nothing due today concerning the CAD.