Last Thursday’s signals were not triggered as the price never quite reached 1.3475 during the specified period.
Today’s USD/CAD Signals
Risk 0.75% 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 the next touch of 1.3432 or 1.3402.
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
Short entry after the next bearish price action rejection following the next touch of 1.3529 or 1.3565.
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 last Thursday that the price was ranging relatively unpredictably. I was ready to be bullish above 1.3529 if the price could trade up there for a couple of hours.
Apart from that, I thought the technical picture looked unattractive to trade. I was partially right, as the price action has remained hard to predict.
The technical picture is now more bullish, and we could be close to an important bullish breakout. A sudden deterioration in global risk sentiment on the U.S. / China tariff dispute has sent Crude Oil falling sharply, which has knocked the Canadian Dollar, so if that sentiment continues to deteriorate and the price can get established above 1.3529 for a couple of hours, I would be ready to take a bullish bias here. However, the round number below that at 1.3500 could be an obstacle to a further rise, and the relative weakness of the Canadian economy could also prevent the Loonie mirroring Crude Oil very closely now.
There is nothing important due today concerning the USD. Regarding the CAD, the Governor of the Bank of Canada will be giving a minor speech at 6:45pm London time.