Yesterday’s signals were not triggered, as there was no bearish 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 1.3089 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 1.3003 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 there was no long-term trend to take advantage of but there was certainly a medium-term bearish trend so a short here if the price continues to look bearish at 1.2962 could be a trading opportunity today, although watch out for the FOMC meeting minutes release later.
In a way this was a good call as the level at 1.2962 was very pivotal – it broke early on and then a strong U.S. advanced everywhere, including against the Canadian Dollar.
Although we are approaching a recent swing high area, the short-term action looks bullish and it would not be a great surprise if the bulls were able to drive the price up to the next resistance at 1.3089 today.
There is nothing important due today concerning either the CAD or the USD.