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 1.3281.
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 Trade
Go long after the next strongly bullish price action rejection following the next touch of 1.2962.
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 even though we were seeing an emerging long-term bullish trend which is threatening to really start running up soon, I would stand aside from this pair for another day to see if we could get some more directional clarity. We are going to need another today – today – to have a chance to get such clarity, with the price really just continuing to consolidate ahead of the Canadian GDP data release due later. The nearest support and resistance levels are a very long way away, and the only notable technical development is a small consolidating triangle shown in the price chart below, which might have some effect on the price.
I would generally be happier taking long than short trades here, as it looks like we have a long-term bullish trend that might be about to get established. The U.S. Dollar is generally strong and supports this approach. Yet the Canadian GDP data release is likely to be the crucial factor here over the short term.
There is nothing important due today concerning the USD. Regarding the CAD, there will be a release of GDP data at 1:30pm London time, followed by the Governor of the Bank of Canada testifying before Parliament at 9:15pm.