Yesterday’s signals were not triggered, as there was no bearish price action at 1.3117.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be taken before 5pm New York time today only.
Short Trade
Go short after the next bearish price action rejection following the next touch of 1.3281.
Put 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.
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 Trade
Go long after the next bullish price action rejection following the next touch of 1.2962.
Put 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.
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 price looked as if it were setting up to either fail at 1.3117 or breakout bullishly. It should certainly be the pivotal level, and a bullish breakout looked more likely. However, it was probably wise to be relatively cautious in taking any profits.
This was a great call as 1.3117 was the pivotal level of the day, and the break above it provided a nice opportunity for a profitable long trade entry. It was also good to be quick with profits as the move soon faltered, with subsequent indecisive price action invalidating the level at 1.3117.
We are now back to where we were a few days ago, with no key levels anywhere nearby and a price chart below that really is just a messy consolidation with nothing to trade off, except the short-term triangle trend lines. I would however avoid trading this currency pair for the time being and I have no directional bias today.
There is nothing important due today concerning either the CAD or the USD.