USDCAD: Bullish above 1.3250
Yesterday’s signals were not triggered, as none of the key levels were reached during that day.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be entered between 8am London time and 5pm New York time today only.
Long Trade Ideas
⦁ Long entry after the next bullish price action rejection following the next touch of 1.3250, 1.3232, or 1.3212.
⦁ 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 1.3282, 1.3300, or 1.3320.
⦁ 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 the long-term technical picture was bullish, with a major double bottom above the big round number at 1.3000.
The price has continued to rise, although on relatively low volatility which suggests we may get a bearish pull back soon. However, the price has generated a new higher low at the key psychological level of 1.3250, which is a bullish sign. The line of least resistance is definitely upwards.
I again take a bullish bias on this currency pair today, looking for long trades at bullish bounces at any identified support level.
Concerning the USD, there will be a release of PPI data at 1:30pm London time, followed by testimony by the Chair of the Federal Reserve before Congress at 3pm. Regarding the CAD, the Governor of the Bank of Canada will be speaking at 2:45am.