Yesterday’s signals were not triggered, as the bearish price action took place a little way above 1.3000.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be taken until 5pm New York time, over the next 24-hour period.
Long Trades
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Long entry after the next bullish price action rejection following the next touch of 1.2946 or 1.2914.
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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 Trades
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Short entry after the next bearish price action rejection following the next touch of 1.3000 or 1.3047.
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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 directional bias and that it would be a hard call between the big number at 1.3000 holding for bears or the recent bullish momentum securing finally a break above that level. This was quite accurate as you could argue that both these scenarios happened, as the price popped above 1.3000 briefly but quickly retreated. There is no doubt that the technical picture has become increasingly bullish over the medium term, although there is no long-term trend. However, the USD is strong and Crude Oil is weakening which has hit the Canadian Dollar. Over the short-term 1.3000 may hold but I think it will be broken again within the next few days. I have no directional bias today though.
There is nothing due today concerning the CAD. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time.
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