Yesterday’s signals were not triggered, as there was no bullish price action at 1.3003.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be taken before 5pm New York time today.
Short Trades
Short entry after the next strongly bearish price action rejection following the next touch of 1.3003 or 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 1.2952 or 1.2884.
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 what will happen next here would depend mostly upon how the U.S. stock market did later. Further falls should send the price higher. A sustained break below 1.3000 would be a bearish sign and be technically significant. I was partly wrong as the market did fall a little, but the price here fell, significantly, below the psychologically important 1.3000 area. It looks like the price is now in a box between about 1.2950 and 1.3000 and it could breakout in either direction with some momentum, so these look as if they could become interesting levels to trade off later. I have no directional bias today.
There is nothing important due today concerning either the CAD or the USD.