USDCAD: Still bearish but support closer to 1.3000 area
Last Thursday’s signals were not triggered, as none of the key levels were reached yet.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be taken prior to 5pm New York time today only.
Long Trade Ideas
Go long after the next bullish price action rejection following the next touch of 1.3045 or 1.2962.
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 1.3120 or 1.3177.
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 last Thursday that 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 continues to inch down slowly. However, there is no doubt that the short-term price action is a little more bearish, and the Canadian Dollar is relatively strong.
The closer we get to 1.3000, the more chance there is of a major bullish reversal which could provide a good medium or long-term long trade opportunity.
There is nothing of high importance due today concerning either the CAD or the USD.