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 may only be entered between 8am London time and 5pm New York time today.
Short Trade
Short entry after the next strongly bearish price action rejection following the next touch of 1.3281.
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 Trade
Long entry after the next strongly bullish price action rejection following the next touch of 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 I am starting to feel more bullish on this pair, as we are slowly seeing a long-term trend evolve. If nervous markets continue to push down the price of Crude Oil, then we are more likely to see the Canadian Dollar fall, which strengthens the bullish case. Yet I did not have any short-term bias here at present.
This was a good call as the price has basically gone sideways over the past day. The short-term price action at the time of writing suggests that we are more likely to see a downwards than an upwards move in price today.
There is a long-term bullish trend, but we are very far away from any clear support or resistance levels, which can make trading this pair very difficult, even though we are seeing an emerging long-term bullish trend which is threatening to really start running up soon – although it is still just a threat.
I would stand aside from this pair for another day to see if we can get some more directional clarity.
Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time. Concerning the CAD, the Governor of the Bank of Canada will be testifying before the Canadian Parliament at 8:30pm.