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 can be entered until 5pm New York time today only.
Short Trade
- Short entry after the next 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 Trades
- Long entry after the next bullish price action rejection following the next touch of 1.3182 or 1.3144.
- 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 as we were seeing bullish waves with retracements holding at support, so I would maintain a bullish bias today above 1.3182. This was a good call as the price continued to rise and closed yesterday at another new 50-day high price, which is a bullish sign. The trend is certainly bullish, but not particularly strong, especially considering that the price of crude oil is weak, which should weight the Canadian Dollar more. Overall, I am cautiously bullish as long as 1.3212. If we get a bullish bounce there today, I would be bullish until 1.3281.
There is nothing important due today concerning either the CAD or the USD.