Yesterday’s signals were not triggered, as there was no bearish price action at either of the resistance levels which were reached.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be entered between 8am London time and 5pm New York time today only.
Short Trades
Go short after the next bearish price action rejection following the next touch of 1.3327 or 1.3383.
Put 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.
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 Trades
Go long after the next bullish price action rejection following the next touch of 1.3281 or 1.3208.
Put 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.
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 the short-term action looked bearish now, so it would not be a surprise if the fall continued, especially as we had a major failure for the bulls just a few days ago. I was completely wrong, the price actually rose very strongly (driven by a huge fall in the price of Crude Oil which brought down the Canadian Dollar) in one of its strongest recent movements of the past several months, breaking to new high prices not seen for almost 5 months. This suggests that the odds are now in favour of bulls, but this pair tends to move in a slippery way. The price has short-term bearish momentum, but when it turns bullish, it could be a good time to enter long with the odds on your side. I would take a bullish bias today if the price makes a healthy bullish bounce at the support level of 1.3281.
There is nothing important due today concerning the CAD. Regarding the USD, there will be a release of Core Durable Goods Orders at 1:30pm London time.