Yesterday’s signals were not triggered as there was no bullish price action at 1.3250 or 1.3208.
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 1.3165.
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 1.3249 or 1.3295.
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 I didn’t see any resistance as reliable until 1.3332. There was no good trend to exploit and most of the key levels did not look particularly strong, so this pair was probably best avoided for the time being. This was an OK call as I didn’t see a way to predict what eventually happened. The price is still in a medium to long-term range, and the levels still look unreliable, so no change to my approach here for the time being – better opportunities likely elsewhere.
There is nothing of high importance due today regarding the CAD. Concerning the USD, there will be a release of CPI data at 1:30pm London time.