Yesterday’s signals were not triggered, as there was no bearish price action at 1.3402.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm New York time today only.
Long Trades
- Go long after the next bullish price action rejection following the next touch of 1.3402 or 1.3338.
- 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 1.3475 or 1.3529.
- 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 upcoming FOMC release usually makes a big impact upon this pair. It could send the price anywhere but is often best exploited as a spike to be traded as a reversal at an extreme. I had a feeling a long at 1.3338 could be a great trade to take around the time of the FOMC release.
This call wouldn’t have got anyone into trouble, but it was not very useful either.
The price is ranging relatively unpredictably. I think the only edge which might become apparent here would be if there is a strong bullish move to new highs above 1.3529, although it does not look as if that will happen today. I would be bullish above that level if the price can trade up there for a couple of hours.
Shorter-term trades should not the price looks evenly balanced halfway between support and resistance levels, which is not attractive.
There is nothing important due today concerning either the CAD or the USD.