USDCAD: More Bullish above 1.3425
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 may only be entered before 5pm New York time today.
Long Trades
Long entry after the next bullish price action rejection following the next touch of 1.3365 or 1.3345.
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 run.
Short Trades
Short entry after the next bearish price action rejection following the next touch of 1.3463 or 1.3479 or 1.3493.
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 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 picture had become much more bullish as the USD had strengthened and all the commodity currencies including the CAD were relatively weak. If the price could push up to new highs it had a good chance to keep going until the cluster of resistance levels just under 1.3500.
This was an OK call although the upwards move has not happened, with the price just consolidating bullishly. This means that yesterday’s analysis still holds, and we could still get a good bullish breakout from the consolidation above 1.3425. However, bulls should beware of the 1.3500 area. That is a big number and should hold the price today, so those resistances are good points at which to take profit on any long trade taken today if it goes well.
There is nothing important due today concerning either the CAD or the USD.