Yesterday’s signals were not triggered, as both of the key levels which were hit were only hit after hours.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm New York time today only.
Long Trade
Go long after the next bullish price action rejection following the next touch of 1.3249.
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 1.3284, 1.3310, or 1.3332.
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 we seemed to have a strong struggle between bulls and bears in this narrow area between 1.3250 and 1.3284 which made it dangerous to be in any position.
I thought it was quite likely that we would see a break above 1.3284. I was wrong about that, but perfectly correct about the struggle between 1.3250 and 1.3284, and we see the price continuing to bounce between these levels. It is impossible to guess which side will see the eventual break, complicated further by the fact that we have a very major FOMC release due later which could push the price backwards and forwards with very high volatility.
It is probably best to stand aside for the time being until we hopefully get some more clarity after the FOMC.
There is nothing of high importance due today regarding the CAD. Concerning the USD, there will be a release of the FOMC Statement and Federal Funds Rate at 7pm London time, followed by the FOMC Press Conference half an hour later.