Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be taken before 5pm New York time today only.
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 1.3369 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 I was unable to make any directional call, but volatility had been relatively high recently so the FOMC release was likely to provoke some action, and this pair would probably also be moving more than most of the market pre-FOMC. I was partially right, but after the FOMC release little happened, and this pair is relatively stable and range-bound. For that reason, there will certainly be better opportunities in pairs such as USD/JPY today than in USD/CAD,so this pair is probably best avoided today by traders.
There is nothing of high importance due today concerning either the CAD or the USD.