Yesterday’s signals were not triggered, as the bullish bounce at 1.3391 did not happen before New York closed.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be taken before 5pm New York time on Tuesday.
Long Trades
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Long entry after the next bullish price action rejection following the next touch of 1.3391 or 1.3357 or 1.3332.
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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 Trade
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Short entry after the next bearish price action rejection following the next touch of 1.3470.
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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 the price was likely to consolidate here unless the retail sales data due later was a major surprise, so the best approach would probably be to trade rejections of either level on short-term time frames while being very careful with risk and booking profits quickly. This was a good call as support and resistance levels have held and continue to hold.
Today we have important U.S. data which may give more direction here. A break above the recent highs to new highs will be a bullish sign, but it could be hard for the price to get beyond the 1.3500 psychological area. Conversely, a break below 1.3391 could spark a bigger downwards movement, but there is a lot of support so it might reverse quickly and unexpectedly. I think that 1.3391 is likely to be today’s pivotal level, but I have no directional bias.
There is nothing of high importance due today concerning the CAD. Regarding the USD, there will be a release of CPI data at 1:30pm London time.
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