USDCAD: Bulls failing to break recent highs
Yesterday’s signals produced a long trade from the hourly bullish pin candlestick which rejected the support level at 1.3153. This trade is in profit, but it would probably be wise to move the stop to break even as it looks quite likely to turn into a losing trade.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be entered before 5pm New York time today.
Long Trade Ideas
Long entry after the next bullish price action rejection following the next touch of 1.3151, 1.3120, or 1.3104.
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
Short entry after the next bearish price action rejection following the next touch of 1.3250.
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 more bullish. I thought that if the price could break and hold above the round number and previous inflection point at 1.3200, I would take a bullish bias, as we could then see a continuing rise to 1.3250.
As it happened, the price was held up by the 1.3150 area, but has not managed to make a higher high yet, as can be seen in the price chart below, so the outlook now seems a little less bullish.
I think everything will now depend upon whether the price can get established above 1.3200 (a more bullish sign) or below 1.3150 (a more bearish sign). I would take a bearish bias if we get 2 consecutive closes above 1.3200 later during the London session or the first half of the New York session.
There is nothing of high importance due today concerning the CAD. Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time.