USDCAD: Still bearish below 1.3186
Yesterday’s signals were not triggered, as there was insufficiently bearish price action at 1.3151.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be taken prior to 5pm New York time today only.
Long Trade Ideas
Go long 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 Ideas
Go short after the next bearish price action rejection following the next touch of 1.3185 or 1.3247.
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 technical picture had become even more bearish, but bears faced some obstacles as we had a cluster of three key support levels between 1.3100 and 1.3150.
I was ready to take a bearish bias if there was a bearish reversal at 1.3185 before the price hit 1.3151, and I would exit at 1.3151.
This was an OK call as the price hit 1.3151 first, invalidating that support level, but rising again towards the very key resistance level at 1.3186.
The picture still looks bearish, although we have to wonder about the two support levels above 1.3100. I would be prepared to take a bearish bias today if we get a solid bearish reversal at 1.3186.
There is nothing of high importance due today concerning either the CAD or the USD.