Yesterday’s signals were not triggered, as there was insufficiently bearish price action at 1.3089.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be taken between 8am London time and 5pm New York time today.
Short Trade
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Short entry after the next strongly bearish price action rejection following the next touch of 1.3118.
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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.
Long Trade
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Long entry after the next strongly bullish price action rejection following the next touch of 1.3003.
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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.
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 if the price broke firmly below 1.3087 as the London session got underway, I would take a mildly bearish bias. Such a firm break never happened and it was a good call to see this area as the pivotal level for the day. Today, it looks as if the resistance at 1.3118 is going to be important. A failure there could trigger a stronger downwards movement, providing a short trade opportunity, while a clean break above 1.3118 would have little in the way of a further rise, giving a potential long trade opportunity. I am wary of using the support at 1.3084.
There is nothing important due today concerning either the CAD or the USD.
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Editors’ Picks
EUR/USD comes under pressure near 1.0630
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GBP/USD retreats toward 1.2450 on modest USD rebound
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Gold is closely monitoring geopolitics
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Ripple (XRP) price hovers below the key $0.50 level on Thursday after failing at another attempt to break and close above the resistance for the fourth day in a row.
Have we seen the extent of the Fed rate repricing?
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