USDCAD: Strong CAD, bearish picture
Last Thursday’s signals were not triggered, as there was no bullish price action at 1.3177.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be entered before 5pm New York time today.
Long Trade Idea
Long entry after the next bullish price action rejection following the next touch of 1.3045.
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
Short entry after the next bearish price action rejection following the next touch of 1.3104 or 1.3120.
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 last Thursday that a potential scenario would be a sustained break below 1.3177 which could trigger a further downwards thrust, so I was prepared to take a bearish bias later that day if we had gotten two consecutive hourly closes below that level, to at least 1.3120. We did, so this was a great call.
The picture is bullish as the price threatens the 2019 on a weak Dollar plus the certainty of the Canadian election result emerging over recent hours, which seems to show a minority Liberal government continuing the Trudeau premiership.
Despite the bearish picture, it seems likely we will get some kind of bullish bounce soon. I would be very interested in a long trade off a bullish bounce at the key level of 1.3045 which has been very pivotal in the past, so if that sets up, I would take a bullish bias there.
There is nothing of high importance due today concerning either the CAD or the USD.