USDCAD: 1.3300 likely to be day’s pivotal point
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 taken 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 1.3277, 1.3241 or 1.3204.
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 ride.
Short Trade
Go short after the next bearish price action rejection following the next touch of 1.3365.
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 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 due to the very tight consolidation following a strong directional (bearish) move, that is usually a sign of impending continuation, so I continued to take a bearish bias for the day. The problem for bears however was the support nearby at 1.3241 and 1.3204 and of course the big psychological level just above them at 1.3250 as well. These could halt a downwards movement.
It turned out that I was right to be wary of the support levels, which have had the effect of reversing some of the bearish movement and pushing the price up to the round number at 1.3300, where the bulls were halted. However, we have a new higher support level at 1.3277.
I think that the round number at 1.3300 is quite likely to be today’s pivotal point. I take no directional bias today. The big U.S. inflation data release due later will probably make the direction of the price clearer.
Regarding the USD, there will be a release of CPI (inflation) data at 1:30pm London time. There is nothing of high importance due today concerning the CAD