Yesterday’s signals were not triggered, as there was insufficiently strong price action at both 1.3040 and 1.3085 to trigger an entry.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may be taken until 5pm New York time today only.
Long Trade
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Go long after the next bullish price action rejection following the next touch of 1.2996.
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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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Remove 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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Go short after the next strongly bearish price action rejection following the next touch of 1.3050.
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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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Remove 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 there had been a surprising bullish turn which was strong and dramatic, pushing the price well out of its medium-term bearish price channel. I saw this as a significant bullish development which really changed the technical picture and made the outlook considerably more bullish. I was wrong, and the technical situation now looks freer and more able to move up and yet very chaotic, making it hard to make any call. I have little faith in any of the levels or lines and it looks like a good idea to completely avoid trading this currency pair today.
There is nothing important due today concerning the CAD. Regarding the USD, there will be a release of PPI data at 1:30pm London time.
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