Yesterday’s signals were not triggered, as the resistance at 1.3210 was not reached until the end of the New York session.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be taken between 8am London time and 5pm New York time today.
Long Trade
Long entry after the next bullish price action rejection following the next touch of 1.3055.
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 1.3284 or 1.3310.
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 problem with this pair was that the USD was strong and trending up, but it was relatively weak against the Canadian Dollar, so this was not a great vehicle to trade at the moment to take advantage of current market sentiment, except over the very short term.
In fact, the price rose here just as well as it did in most other USD pairs, so I was overly pessimistic.
There is no long-term trend, but the Dollar is certainly bullish everywhere right now (except perhaps against the Japanese Yen), and it looks as though yet another resistance level is being invalidated, so I expect we will see higher prices still over the course of today. I take a bullish bias on this currency pair.
There is nothing of high importance due today regarding either the CAD or the USD.