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 must be entered between 8am London time and 5pm New York time today only.

Long Trades

• Long entry after the next bullish price action rejection following a first touch of 1.2541 or 1.2522.

• 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 Trade 1

• Short entry after the next bearish price action rejection following a first touch of 1.2692.
• 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

The long-term bearish trend has resumed in earnest over recent days, with the price selling-off from 1.2774 and moving down in two strong bearish waves. Yesterday saw another downwards movement, although it was not as strong as the previous waves, not even close. I maintain a generally bearish bias here, but the support starting at 1.2542 is looking increasingly likely to produce some bullish bounce.

(Click on image to enlarge)

There is nothing due today concerning the USD. Regarding the CAD, there will be a release of Core Retail Sales at 1:30pm London time.