USDCAD: Bullish consolidation between 1.3236 and 1.3308
Last Thursday’s signals were not triggered as there was no bullish price action at 1.3271 that day.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be taken 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 1.3236 or 1.3177.
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
Short entry after the next bearish price action rejection following the next touch of 1.3308, 1.3345, or 1.3359.
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 despite the medium to short-term bullish picture, over the long-term the price was still ranging. The price really needed to get established above 1.3359 to generate a truly bullish picture and it got nowhere near that.
The picture now is one of a slightly bullish consolidation pattern between 1.3308 and 1.3236. Due to the long-term trend I would prefer a long trade from a bullish bounce at 1.3236 but a short trade with a conservative profit target from 1.3308 could also be possible.
I would take a bullish bias if we get a nice bullish reversal at 1.3236 later, or a bearish bias if we get a bearish reversal later at 1.3359, the latter of which is not likely to happen today.
There is nothing of high importance due today concerning either the CAD or the USD.