USDCAD: Today’s pivotal point likely to be 1.3177
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 must be taken prior to 5pm New York time today.
Long Trade Ideas
Go long after the next bullish price action rejection following the next touch of 1.3177, 1.3120 or 1.3104.
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 1.3240, 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
I wrote yesterday that the picture now was one of a medium-term bearish trend but the support level at 1.3177 looked strong.
This was a good call as the price has continued to fall, but the support at 1.3177 has not even been touched yet, let alone broken.
A long trade there could be interesting if there is a convincing short-term bullish reversal, but a short from any of the resistance levels above also looks good. Conversely, a sustained break below 1.3177 could trigger a further downwards thrust, so I would be prepared to take a bearish bias later today if we get two consecutive hourly closes below that level, to at least 1.3120.
There is nothing of high importance due today concerning the CAD. Regarding the USD, there will be a release of Philly Fed Manufacturing Index data at 1:30pm London time and Crude Oil Inventories at 4pm.