Yesterday’s signals were not triggered, as there was no bullish price action at 1.3332.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be taken prior to 5pm New York time on Thursday.
Long Trades
Long entry after the next bullish price action rejection following the next touch of 1.3241 or 1.3204.
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 1.3332, 1.3369 or 1.3389.
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 we saw a strong and clear short-term bearish trend line holding the price down. If the price broke above it strongly, that would be a bullish sign, and the price would be likely to go on to retest the recent highs under 1.3500. This opportunity did not set up, and the price continued to fall instead, with the Canadian Dollar helped along by the price of Crude Oil closing at a new 4-month high price.
The picture is bearish and if the price breaks below 1.3285 during today’s session on higher than average volatility, I would take a bearish bias on this currency pair, especially if it happens during the New York session with Crude Oil trading at new higher highs.
There is nothing of high importance due today concerning the CAD or the USD.