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 must be entered between 8am London time and 5pm New York time today only.
Long Trade
Go long after the next bullish price action rejection following the next touch of 1.3055.
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.
Short Trades
Go short after the next bearish price action rejection following the next touch of 1.3324 or 1.3367.
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.
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 there were a few reasons to be bearish and said that I would take a bearish bias if the price traded below 1.3225 with higher than average volatility. As it happened, the price turned and rose, so using 1.3225 as a pivotal point was enough to stay out of trouble. The U.S. Dollar is quite strong at present, but so is Crude Oil, which is preventing any really strong movement developing in this pair so far. Markets are generally quiet, so it is a little difficult to trade right now.
It is difficult to say what will happen next as the price is in an area which it has been unable to break past. If it does rise to 1.3325 and then make a strongly bearish reversal, I would take a bearish bias.
There is nothing important due regarding either the USD or the CAD.