USDCAD: Bearish but support closer to 1.3000 area
Yesterday’s signals were not triggered, as none of the key levels identified were reached.
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 1.3045 or 1.2962.
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 1.3120 or 1.3177.
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 yesterday that as the price gets closer to the key support level of 1.3045 and the round number at 1.3000, the more likely we were to see a major bullish reversal. For these reasons, I was ready to take a bearish bias if we had gotten a bearish reversal at 1.3120, or a bullish bias if we had gotten a bullish reversal at 1.3045.
This analysis still applies today as the price has just moved down slowly. However, there is no doubt that the short-term price action is a little more bearish.
There is nothing of high importance due today concerning either the CAD or the USD.