Today’s USD/CAD Signals

Risk 0.50% per trade.

Trades may only be taken before 5pm New York time today.

Long Trades

• Long entry after the next bullish price action rejection following a first touch of 1.3308 or 1.3250.
• Place the stop loss 1 pip below the local swing low.
• Move the stop loss to break even once the trade is 20 pips in profit.
• Take off 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

• Short entry after the next bearish price action rejection following a first touch of 1.3373 or 1.3427.
• Place the stop loss 1 pip above the local swing high.
• Move the stop loss to break even once the trade is 20 pips in profit.
• Take off 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

The direction has become much more predictable and pronounced, with the price breaking up past resistance and flipping 1.3308 to become probable support. The Canadian Dollar has moved from being unusually strong to unusually weak. A long trade set-up from 1.3308, with the round number supporting it, is likely to be the best potential trade of today in this pair.

(Click on image to enlarge)

Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm London time. Simultaneously, there will be a release of Canadian Core Retail Sales data.