USDCAD bulls still failing near 1.3500
Yesterday’s signals were not triggered as there was no bullish price action at 1.3447.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be entered before 5pm New York time today.
Long Trade
Long entry after the next bullish price action rejection following the next touch of 1.3376.
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 Trade
Go short after the next bearish price action rejection following the next touch of 1.3448.
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
I wrote yesterday that I would take a bullish bias if the price could end a day above 1.3529. I would still do so.
I thought that it was worth keeping an eye on this pair for a bullish breakout, but it was probably going to need a reduction in tensions and risk fears for Crude Oil to drop enough to help down the Canadian Dollar, plus a weak inflation print later.
We have not had these conditions, so it is not a surprise that the price has fallen and created a new bearish resistance level at 1.3448 which is likely to be today’s pivotal point.
The chart below shows there seems to be really determined selling every time the price reaches or gets close to the big round number at 1.3500 – there may well be an institution holding a large option which needs to defend that level from the bulls.
Regarding the CAD, the Governor of the Bank of Canada will be holding a minor press conference at 4:15pm London time. There is nothing important due concerning the USD.