USDCAD: Ranging Above 1.3000
Yesterday’s signals were not triggered, as there was no bullish price action at 1.3062.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be entered before 5pm New York time Thursday.
Long Trade Idea
Long entry after the next bullish price action rejection following the next touch of 1.2962.
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 Trade Idea
Go short after the next bearish price action rejection following the next touch of 1.3120.
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 1.3060 area looked likely to again be the day’s pivotal point. However, after a small bullish bounce there early in the London session, the level became invalidated.
The technical picture has changed somewhat: zooming out, we can see the price is essentially just consolidating above 1.3000 and it is neither a bullish nor bearish type of consolidation. The action is very flat and dull, so I think this pair is best avoided for the time being.
There is nothing of high importance due today regarding either the CAD or the USD.