USDCAD: Bullish consolidation between 1.3289 and 1.3345
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be taken prior to 5pm New York time today.
Long Trade Idea
Go long after the next bullish price action rejection following the next touch of 1.3289.
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 1.3345 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
We have a very slow and weak bullish trend over the long term. The price is currently trading within a bullish consolidation pattern between 1.3289 and 1.3345. A rejection of either level, or the higher resistance level at 1.3359, could be an excellent trade. If there is a sustained break below 1.3289, this could see a sharp further fall down to the 1.3200 area.
I see the best potential set up today as a long trade following a bullish bounce at 1.3289.
There is nothing of high importance due today concerning the CAD. Regarding the USD, there will be a release of CPI (inflation) data at 1:30pm.