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 may only be entered between 8am London time and 5pm New York time today.
Short Trade
Short entry after the next bearish price action rejection following the next touch of 1.3117.
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 a short trade off 1.3117 could be interesting later if it sets up. There was no real long-term trend here or even a short-term one though so be very careful.
The price never quite reached 1.3117 and now looks as if it is setting up to either fail there or breakout bullishly. It should certainly be the pivotal level today, and a bullish breakout looks more likely. There will probably be a trading opportunity after the price reaches 1.3117. However, it is probably wise to be relatively cautious in taking any profits.
There is nothing important due today concerning either the CAD or the USD.