USDCAD: Consolidating within a month-long price range
Yesterday’s signals were not triggered, as none of the key levels were reached.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be entered between 8am London time and 5pm New York time today.
Long Trades
Go long after the next bullish price action rejection following the next touch of 1.3429 or 1.3359.
Put 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.
Remove 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
Go short after the next bearish price action rejection following the next touch of 1.3468 or 1.3529.
Put 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.
Remove 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
I wrote yesterday that the long and medium-term technical pictures were unchanged with the price stuck near the middle of a price range and consolidating, but the short-term action was interesting as we saw two new resistance levels nearby. I did not trust either of the these, but I thought there could be some interesting activity in this pair over the day. I was right about not trusting the nearby levels but wrong about the activity as the price hardly moved.
The only thing that can usefully be said about this currency pair now is that we have very evenly matched support and resistance levels, with the price right in the middle of both of them. You will rarely see a currency pair with less direction than this. I am standing aside from trading this pair for the time being, but if you are determined to trade here, it might be wise to look for quick scalps from reversals of either of the nearby support and resistance levels at 1.3429 and 1.3468 respectively. I breakout from this inner range could indicate a continuation to the further level at the extreme of the price chart.
There is nothing of high importance due today concerning either the CAD or the USD.