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 may only be taken between 8am London time and 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 1.3055.
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Put 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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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 Trades
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Short entry after the next bearish price action rejection following the next touch of 1.3165 or 1.3211.
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Put 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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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 wrote yesterday that this pair remains interesting as we have seen an abnormally strong movement in the Canadian Dollar, so we may see more momentum to the downside in this pair. However, at present the U.S. Dollar was relatively strong, so the move was probably not going to happen yet. None of the key levels were reached and it may be that volatility is dying off here making the pair less attractive to trade. We will probably need to wait for the USD data release later to see if there is still life here – if so, I’d be interested in any reversal from a key level after that time, especially a short trade as we are seeing the start of a possible long-term bearish trend.
There is nothing of high importance due today regarding the CAD. Concerning the USD, there will be a release of ISM Non-Manufacturing PMI data at 3pm London time.
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