Yesterday’s signals were not triggered, as the support level at 1.3391 was not reached until after the New York close.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be taken from 8am London time until 5pm New York time today.
Long Trades
Long entry after the next bullish price action rejection following the next touch of 1.3388 or 1.3345.
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 1.3470, 1.3529, or 1.3565.
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 within sight of multi-week highs at around 1.3470 and a break above there, and ideally the psychological level at 1.3500 also, could see the start of a much stronger bullish directional movement. However, this might be hard to achieve if the U.S. Dollar turns fully bearish and breaks below the consolidation the Dollar Index has been making over the past several weeks.
I take the same approach today. I was waiting for 1.3470 to be broken to the upside and it never happened but if we get two hourly closes above that level today, I would take a bullish bias. The fact that the nearest support level at 1.3388 has held up is a bullish sign.
This currency pair is worth watching this week.
There is nothing of high importance due today concerning the CAD. Regarding the USD, there will be a release of CB Consumer Confidence data at 2pm London time today