Yesterday’s signals were not triggered, as there was no bullish price action at any of the key support levels which were reached.
Today’s USD/CAD Signals
Risk 0.50% per trade.
Trades may only be taken before 5pm New York time today.
Long Trade 1
Go long after the next bullish price action rejection following a first touch of 1.3210.
Put the stop loss 1 pip below the local swing low.
Adjust the stop loss to break even once the trade is 20 pips in profit.
Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
Short Trades
Go short after the next bearish price action rejection following a first touch of 1.3312 or 1.3373.
Put the stop loss 1 pip above the local swing high.
Adjust the stop loss to break even once the trade is 20 pips in profit.
Remove 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
This pair seized the market’s attention during the latter part of yesterday’s New York session when the Bank of Canada’s Senior Deputy Governor Wilkins suggested a rate hike might be on the way. This had the effect of sending the Canadian Dollar sharply higher, and the effect is still being felt in trading as I write hours later, with the Loonie going on to make new highs. This pair was no exception, and the price cut through three major levels of anticipated support like a knife through butter.
There is no long-term trend in this pair, which suggests that the move should end in a significant pull back. However, it is too early to say how much further this pair might fall before that happens. I would be very careful in taking any long trade today. A quick pull-back to the nearest resistance at 1.3312 could be an excellent opportunity to enter a short trade.
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