Yesterday’s signals were not triggered, as neither of the key levels have been reached yet.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be entered between 8am and 5pm New York time today.
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 Trade
Long entry after the next 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 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. Yet the Canadian GDP data release was likely to be the crucial factor here over the short term.
The Canadian GDP came in very slightly ahead of the consensus expectation, showing a growth rate of 0.1%, and although right after the release the Canadian Dollar counter-intuitively fell in value, it has made up ground over recent hours against a generally weak U.S. Dollar.
The problem with trading this pair is that it has been ranging sideways for a long time and is far from any obvious support or resistance level in either direction, which makes trading this pair quite dangerous. However, there is a hint of an emerging long-term bullish trend.
I would stay away from trading this pair today.
There is nothing important due today concerning the CAD. Regarding the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time.