USDCAD: Threatening bullish breakout above 1.3365
Last Thursday’s signals were not triggered as none of the key levels were reached that day.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm New York time today only.
Long Trade Ideas
Go long after the next bullish price action rejection following the next touch of 1.3308.
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
Go short after the next bearish price action rejection following the next touch of 1.3345 or 1.3365.
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
This pair is looking more bullish, as it threatens to finally truly break out of this range which has been holding it in a very weak bullish trend for quite a long time.
We are getting new higher support levels and a break of a bearish trend line.
However, the resistance levels at 1.3345 and 1.3365 continue to hold.
If we can get a breakout above 1.3365 that will be a very bullish sign and we could see a strong, fast bullish move which could be a great long trade opportunity.
Surely this zone from 1.3345 to 1.3365 is going to be today’s pivotal point, or pivotal zone if you prefer. A short trade from this area could also be interesting upon a failed attempt at a bullish breakout.
There is nothing of high importance due today concerning the CAD. Regarding the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time.