Yesterday’s signals were not triggered, as the bullish bounce at 1.3391 did not happen before New York closed.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be taken before 5pm New York time on Tuesday.
Long Trades
Long entry after the next bullish price action rejection following the next touch of 1.3391 or 1.3357 or 1.3332.
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 Trade
Short entry after the next bearish price action rejection following the next touch of 1.3470.
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 likely to consolidate here unless the retail sales data due later was a major surprise, so the best approach would probably be to trade rejections of either level on short-term time frames while being very careful with risk and booking profits quickly. This was a good call as support and resistance levels have held and continue to hold.
Today we have important U.S. data which may give more direction here. A break above the recent highs to new highs will be a bullish sign, but it could be hard for the price to get beyond the 1.3500 psychological area. Conversely, a break below 1.3391 could spark a bigger downwards movement, but there is a lot of support so it might reverse quickly and unexpectedly. I think that 1.3391 is likely to be today’s pivotal level, but I have no directional bias.
There is nothing of high importance due today concerning the CAD. Regarding the USD, there will be a release of CPI data at 1:30pm London time.