Yesterday’s signals were not triggered, as the bullish bounce at the support level identified at 1.3053 did not occur until after 5pm New York time.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm New York time today only.
Long Trades
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Long entry after the next bullish price action rejection following the next touch of 1.3053 or 1.2996.
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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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Take off 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 strongly bearish price action rejection following the next touch of 1.3281.
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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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Take off 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 took no bias yesterday as I thought the price action was looking unpredictable. The only key level which was reached yesterday did hold, and we have seen a small bullish bounce at the support at 1.3053. This is slightly bullish, but the action in the chart below also shows a lot of previous selling above that level, so I remain uncertain on this pair. It is probably best avoided for the time being, and there are likely to be better opportunities today in the European currency pairs with the U.S. Dollar.
There is nothing important due today concerning the CAD. Regarding the USD, there will be a release of Retail Sales data at 1:30pm London time and Crude Oil Inventories at 3:30pm.
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