USDCAD: Bottoming out above 1.3045?
Yesterday’s signals were not triggered, as none of the key levels have been reached yet.
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.
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 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 very slowly. However, it may be that the lack of movement is indicating a greater chance that a major bullish reversal from the support level at 1.3045 is more likely to happen.
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 the CAD. Regarding the USD, there will be a release of CB Consumer Confidence data at 2pm London time.