Yesterday’s signals were not triggered as there was no suitable price action at the key levels which were reached. The pin candlestick a 1.3327 was too small.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm New York time today.
Short Trade
- Short entry after the next bearish price action rejection following the next touch of 1.3383.
- Place 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.
- 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 bullish price action rejection following the next touch of 1.3183.
- Place 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.
- 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 would be bullish if the price broke above 1.3327 for a couple of hours; or if it failed there decisively and produced a double top, I would be bearish. I saw 1.3327 as the likely pivotal level of the day. This initially appeared to be the case, but I was wrong. The price has moved quite erratically now invalidated nearby levels, leaving us with a mess within a wide range where it looks as if anything might happen now. The best that can be said is that there may be some support at about 1.3240.
For this reason, I see no opportunity here, and would avoid trading this currency pair today.
There is nothing important due today concerning the CAD. Regarding the USD, there will be a release of the FOMC Meeting Minutes at 7pm London time.