Yesterday’s signals produced a losing short trade following the bearish rejection of the resistance level identified at 1.3249.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be entered between 8am and 5pm New York time today.
Long Trade
Long entry after the next bullish price action rejection following the next touch of 1.3165.
Put 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.
Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.
Short Trades
Short entry after the next bearish price action rejection following the next touch of 1.3269, 1.3295, or 1.3332.
Put 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.
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 was still in a medium to long-term range, and the levels still looked unreliable, so no change to my approach here for the time being – better opportunities likely elsewhere. This was a good call, as the only setup according to the key levels was a losing trade.
The U.S. Dollar is still quite bullish at present, so higher prices would not be a surprise over the course of today. Much will probably depend upon the U.S. retail sales and PPI data due for release later. A short at 1.3269 after the data release could be interesting if it dovish for the greenback, but overall due to the medium-term lack of trend, I have no directional bias on this pair.
There is nothing of high importance due today regarding the CAD. Concerning the USD, there will be releases of Retail Sales and PPI data at 1:30pm London time.