Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be taken between 8am London time and 5pm New York time today.
Long Trade
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Long entry after the next bullish price action rejection following the next touch of 1.2487.
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Put the stop loss 1 pip below the local swing low.
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Adjust the stop loss to break even once the trade is 20 pips in profit.
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Take off 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to run.
Short Trade
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Short entry following a bearish price action reversal on the H1 time frame immediately upon the next touch of 1.2698.
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Put the stop loss 1 pip above the local swing high.
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Adjust the stop loss to break even once the trade is 20 pips in profit.
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Take off 50% of the position as profit when the price reaches 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 short-term action now looks bearish, although today is likely to be a quiet day anyway. There is no long-term trend in this pair. I was wrong about the price moving down, but right about it being a quiet day yesterday, as the price moved little. This pair is very flat and waterlogged, neither bullish nor bearish, and quite far from any key levels. As such, it will probably not be a worthwhile currency pair to trade today.
There is nothing due today concerning either the CAD or the USD.
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