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 must be entered between 8am London time and 5pm New York time today only.
Long Trade
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Long entry after the next bullish price action rejection following the next touch of 1.2960.
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Place the stop loss 1 pip below the local swing low.
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Move the stop loss to break even once the trade is 20 pips in profit.
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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
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Short entry after the next bearish price action rejection following the next touch of 1.3200.
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Place the stop loss 1 pip above the local swing high.
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Move the stop loss to break even once the trade is 20 pips in profit.
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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 noted yesterday that as there was still a long-term bullish trend and no obvious reason to turn bearish yet, so it may be wisest to stand aside and wait for a deeper pull back to cause the beginning of a stronger rise in the price. This turned out to be reasonably good advice, as the price did continue to fall, and is now close to the psychological level at 1.3000 and the key support level of 1.2960 below that. The price may now be readier to turn bullish again and move in the direction of the long-term trend, but this probably will not happen until the FOMC release later, unless the contents of the release will be bearish for the U.S. Dollar.
There is nothing due today concerning the CAD. Regarding the USD, there will be a release of Crude Oil Inventories at 2:30pm London time, followed by the FOMC Statement, Economic Projections, and Federal Funds Rate at 6pm, followed later by the usual press conference.
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