USDCAD: Ranging from 1.3185 to 1.3272
Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s USD/CAD Signals
Risk 0.50% per trade.
Trades must be taken before 5pm New York time today only.
Long Trade Ideas
Long entry after the next bullish price action rejection following the next touch of 1.3185, 1.3151, or 1.3120.
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 Ideas
Short entry after the next bearish price action rejection following the next touch of 1.3272 or 1.3345.
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 previous bullish trend was barely present, and this trend looked extremely weak, so I really had no directional bias. The only opportunity I saw here which may set up was a solid bullish bounce at a touch of 1.3185, but that level was never reached.
The price is not far from the middle of its most recent range area and is very slightly bullish but barely so. This suggests a lack of direction and ranging conditions are likely to prevail, but we have key U.S. economic data due for release later which could push the price around. I see the best opportunity as fading a spike to any key level following that release – apart from that, I doubt there will be much opportunity here, although a long from a strong bullish bounce at 1.3185 could still be a good trade.
There is nothing of high importance due today concerning the CAD. Regarding the USD, there will be a release of CPI (inflation) data at 1:30pm London time.