USDCAD: Choppy consolidation from 1.3236 and 1.3308
Yesterday’s signals were not triggered as none of the key levels were reached.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be entered before 5pm New York time today.
Long Trade Ideas
Go long after the next bullish price action rejection following the next touch of 1.3236 or 1.3177.
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 1.3308, 1.3345, or 1.3359.
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 now was one of a slightly bullish consolidation pattern between 1.3308 and 1.3236. Due to the long-term trend I preferred a long trade from a bullish bounce at 1.3236 but thought that a short trade with a conservative profit target from 1.3308 could also be possible.
This call was not really tested as none of the key levels mentioned were ever reached. The technical picture remains the same: a slightly bullish consolidation. Today’s pivotal point is quite likely to be 1.3236 so if the price can get established below that, it would be a somewhat bearish sign. I will prefer to see a bullish bounce at that level when it will be hit – if that happens, I would take a bullish bias.
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.