USDCAD: Today’s pivotal point likely to be 1.3240 / 50
Last Thursday’s signals were not triggered, as there was no bullish price action at 1.3289.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be entered before 5pm New York time today.
Long Trade Ideas
Long entry after the next bullish price action rejection following the next touch of 1.3206 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 1.3240, 1.3282, or 1.3300.
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 currency pair fell sharply towards the end of last week but has recovered from its low to some degree. Interestingly, the old support and resistance levels all still look relevant despite the broadness of the price movement. We had a muted long-term bullish trend, but after the move down that seems to be over, and we now have a relatively trendless situation.
It seems that the resistance at 1.3240 is probably going to hold. I have greater confidence in this level because it is confluent with the psychological major quarter-number at 1.3250, so I see that as today’s pivotal point: more bearish below it, and more bullish above it if we get such a break.
There is nothing of high importance due today concerning either the CAD or the USD.