USDCAD: Pivotal point at 1.3251
Yesterday’s signals were not triggered, as none of the key levels were reached.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be entered between 8am London time and 5pm New York time.
Long Trade Ideas
⦁ Go long after the next bullish price action rejection following the next touch of 1.3251 or 1.3202.
⦁ 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 1.3345 or 1.3359.
⦁ 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 the price action continues to look bullish but also that there was an inflection area at 1.3325 which may act as resistance. It did so, with the price turning bearish at 1.3320 and falling from there. The action now looks much less bullish, in fact, we can say the chart below shows a fairly even balance between bulls and bears. This is why the nearest key support or resistance level at 1.3251 (very confluent with the big psychological quarter-level at 1.3250) is likely to be so important today – it will probably be hit, and whether or not it holds up will probably determine how the rest of the day goes.
I would take a bullish bias if we get a firm bullish bounce when 1.3251 is hit, or a bearish bias down to 1.3202 if we get a couple of consecutive hourly closes later below 1.3251, ideally as the New York session gets underway.
There is nothing of high importance due today concerning the CAD. Regarding the USD, there will be a release of Chicago PMI data at 2:45pm London time.