Yesterday’s signals were not triggered, as there was insufficiently bullish price action at 1.2160.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be taken from 8am London time until 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 1.2870 or 1.2785.
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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 after the next bearish price action rejection following the next touch of 1.2909 or 1.2971.
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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 trade is 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 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 either the CAD or the USD.
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