Yesterday’s signals were not triggered, as none of the key levels were reached.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be taken between 8am and 5pm New York time today only.
Long Trades
Long entry after the next bullish price action rejection following the next touch of 1.3375 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 or 1.3529.
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 still looking for long trades here, but I wanted to see a couple of hourly closes above 1.3470 and I thought that was very unlikely to happen. An alternative would be to look for healthy bounces at any of the support levels below the current price, especially 1.3375 – I would take a bullish bias also if we got a strong bounce there on above-average volatility.
Neither of these scenarios played out, but the action still looks bullish, so I take exactly the same approach today. I still think this pair is worth watching this week and with the U.S. strengthening now, we could be close to a bullish breakout, perhaps after the U.S. GDP data is released later today at the start of the New York session.
There is nothing of high importance due today concerning the CAD. Regarding the USD, there will be a release of Final GDP data at 12:30pm London time.