Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be taken before 5pm New York time today.
Long Trade
- Go long after the next bullish price action rejection following the next touch of 1.3338.
- Place 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.
- Take off 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 the next touch of 1.3336 or 1.3402.
- Place 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.
- Take off 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 price is well established within a medium to long-term consolidation which could be either bullish or bearish. This lack of a clear direction, coupled with this pair’s typical lack of strong respect for key support and resistance levels, can make trading difficult. It seems we have really clear long-term resistance at 1.3300 becoming flipped to be new support, but the multi-day pattern is also slightly bearish, which contradicts that support. Overall, it’s a confusing situation, so it might be best to avoid trading this pair for the time being. I have no directional bias today.
Concerning the CAD there will be a release of Core Retail Sales data at 1:30pm London time. Regarding the USD, there will be a release of Retail Sales data, also at 1:30pm.