Yesterday’s signals were not triggered as there was no bearish price action at 1.3340 and the high of the day was just a couple of pips below 1.3376.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be taken before 5pm New York time today.
Long Trades
Go long after the next bullish price action rejection following the next touch of 1.3241 or 1.3304.
Place the stop loss 1 pip below the local swing low.
Adjust the stop loss to break even once the trade is 20 pips in profit.
Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
Short Trades
Go short after the next bearish price action rejection following the next touch of 1.3336, 1.3375, or 1.3402.
Place the stop loss 1 pip above the local swing high.
Adjust the stop loss to break even once the trade is 20 pips in profit.
Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
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 level at 1.3304 was likely to be the day’s pivotal level. I thought that if this level held up as London opened, we were likely to see a bullish retracement which might hit 1.3340 which looks like it has probably become very solid support, so I would take a short bias there if there were a firm rejection of that resistance on above-average volatility.
I was correct about the price moving up if 1.3304 held, but I was wrong about the resistance, with the price only turning bearish and falling again after it got very close to the next resistance level at 1.3375.
The price is falling quite steadily and looks like it is about to make a break below the support at 1.3304. If the price can spend the first couple of hours of the London session below 1.3300 on healthy volatility, then I would take a bearish bias and expect to see a further fall as there is plenty of room until the next support level is reached.
The Canadian Dollar is getting a boost from Crude Oil continuing its advance to multi-month high prices.
There is nothing of high importance due today concerning either the CAD or the USD.