USDCAD: Ranging from 1.3185 to 1.3250
Yesterday’s signals may have produced a long trade from the bullish bounce at 1.3185. This trade would still be open at a slight floating loss and looks equally likely to win or lose.
Today’s USD/CAD Signals
Risk 0.50% per trade.
Trades must be entered between 8am London time and 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, 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, 1.3277, 1.3302.
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 this pair was in a strange position, as the U.S. Dollar was quite weak, but the Canadian Dollar (as a commodity currency) was even weaker in the current risk-off market environment.
This suggested that we may get a bullish movement, but bulls would probably really struggle to get the price established above 1.3250.
This meant that we were most likely to see the price continue to range within the 1.3185 to 1.3250 area, potentially giving scalping opportunities from both extremes. This was a good call as the price has stayed very precisely within this range over the past 24 hours.
There is not really any change to the outlook, as both of these currencies are moving in sync within the current risk on / risk off market fluctuation. Again, I see the price as likely to remain within this range for another day, which also again suggests the best opportunities here are going to be scalping reversals at the two extreme prices of this range.
There is nothing of high importance due today concerning either the CAD or the USD.