USDCAD: Ranging above 1.3020
Last Thursday’s signals were not triggered, as neither of the key levels given 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 Monday only.
Long Trade Ideas
Go long after the next bullish price action rejection following the next touch of 1.3047 or 1.2962.
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 Ideas
Go short after the next bearish price action rejection following the next touch of 1.3120 or 1.3153.
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 last Thursday that the price was essentially just consolidating above 1.3000 and was is neither a bullish nor bearish type of consolidation. The action was very flat and dull, so I thought that this pair was best avoided for the time being.
This was a good call, as the price has continued to go sideways and to hold exactly the same consolidation pattern which I had described. The price now seems very evenly stuck between 1.3020 and 1.3100 or maybe 1.3120 with no hint as to in which direction the eventual substantial move will come. For these reasons, trading this pair will be best avoided except perhaps for rejections of this range. I take no directional bias here today.
There is nothing of high importance due today regarding either the CAD or the USD.