Yesterday’s signals were not triggered, as none of the levels were reached yet.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be entered before 5pm New York time today.
Long Trade Ideas
⦁ Go long after the next bullish price action rejection following the next touch of 1.3120 or 1.3045.
⦁ 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 ride.
Short Trade Ideas
⦁ Go short after the next bearish price action rejection following the next touch of 1.3160, 1.3189 or 1.3240.
⦁ 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 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 we were seeing a more confused technical picture in this pair because the price does not want to fall below the 1.3045 area but is reluctant to break above 1.3200 also.
This was a good call as the price has continued to range. With a new lower resistance level appearing at 1.3160, we see the range holding and perhaps getting narrower ahead of today’s high-impact news items scheduled for both currencies, which might make this pair interesting to trade today.
Direction is uncertain, so the best approach is likely to be fading any spike to one of the more extreme key levels after one of the major news releases. I would be especially interesting in a bullish bounce off 1.3045 as this has been long-term support at a major low.
Concerning the CAD, there will be a release of Trade Balance data at 1:30pm London time. Regarding the USD, there will be a release of ISM Non-Manufacturing PMI data at 3pm.