Yesterday’s signals were not triggered, as none of the key levels were reached during the day’s session.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be entered from 8am London time until 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 1.3210 or 1.3249.
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’d be interested in any reversal from a key level after the USD data release, especially a short trade as we are seeing the start of a possible long-term bearish trend. This was enough to keep out of trouble at least.
The problem with this pair is that the USD is strong and trending up, but it is relatively weak against the Canadian Dollar, so this is not a great vehicle to trade at the moment to take advantage of current market sentiment, except over the very short term.
There are probably going to be better opportunities to trade USD strength in other pairs today.
I have no directional bias on this pair today.
There is nothing of high importance due today regarding either the CAD or the USD.