USDCAD: Weakly bullish above 1.3212
Yesterday’s signals were not triggered, as none of the key levels were reached within the specified time.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be taken before 5pm New York time today.
Long Trade Ideas
⦁ Go long after the next bullish price action rejection following the next touch of 1.3232 or 1.3212.
⦁ 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 1.3282, 1.3300, or 1.3320.
⦁ 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 I had a bullish outlook and was seeking long trades on this currency pair, ideally from a bullish bounce at 1.3212.
This was a good call but unfortunately, the price never quite reached that level, making the daily low just 4 pips above it.
The price is up very slightly over the past 24 hours, with no real change to the technical picture which remains bullish over the long and medium terms. However, the short-term price action is a bit then, suggesting we may get another bearish retracement before it can rise again to make new highs. The long-term technical picture is bullish, with a major double bottom above the bug round number at 1.3000.
I again take a bullish bias on this currency pair today, looking for long trades at bullish bounces at any identified support level.
There is nothing of high importance due today regarding the CAD. Concerning the USD, there will be a release of CPI (inflation) data at 1:30pm London time, followed by testimony by the Chair of the Federal Reserve before Congress at 4pm.