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 New York time today only.
Short Trade
Go short after the next strongly bearish price action rejection following the next touch of 1.2952.
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 Trades
Go long after the next strongly bullish price action rejection following the next touch of 1.2884 or 1.2858.
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 I could be prepared to turn bullish on this pair, but I certainly wouldn’t turn bearish. The picture looks different today, as we see the weak support breaking down and a new lower resistance level become established confluent with the half number at 1.2950. There is no strong long-term trend here to exploit, but the medium-term signs such as the double top at about 1.3000 do suggest that the primary movement here is downwards. It currently looks as if the price is heading towards 1.2884 now
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There is nothing important due today concerning the CAD. Regarding the USD, there will be a release of PPI data at 1:30pm London time.