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 taken before 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 1.2530.
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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 1.2669.
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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 wrote yesterday that I had no bias, with longer-term movement uncertain. I did note that a range had formed between 1.2620 and 1.3560, and we have seen the price contained within that range yet moving down from the top to the bottom. If the price continues to fall and move strongly down to 1.2530 before rebounding, we might have a decent long trade entry which has cleared out the stops below 1.2620. I still have no directional bias, and apart from the scenario I just described, I do not think there is likely to be much opportunity here for traders unless something unexpected happens in the middle east to drive up the price of crude oil, which would probably strengthen the Canadian Dollar. The medium-term bearish trend does point to continuing downwards movement.
There is nothing due today concerning the CAD. Regarding the USD, there will be a release of Building Permits data at 1:30pm London time.
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