USDCAD still threatens bullish breakout above 1.3500
Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades must be taken between 8am London time and 5pm New York time today only.
Long Trade
Go long after the next bullish price action rejection following the next touch of 1.3447.
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 run.
Short Trade
Short entry after the next bearish price action rejection following the next touch of 1.3529.
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 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 technical picture was muted bullishness – the price needed to break above 1.3529 and the longer it refuses to fall below the price range shown within the chart below, the more likely such a bullish break is to eventually happen. For now, it was probably best to stand aside, or buy on a dip to 1.3376 with a small position.
I would take a bullish bias if the price could end a day above 1.3529.
Everything I wrote yesterday remains accurate today and was a good call – the price is still basing bullishly and threatening to break above 1.3500. As there is major data due for both currencies in this Forex pair today, this scenario might play out today.
It is worth keeping an eye on this pair for a bullish breakout, but it is probably going to need a reduction in tensions and risk fears for Crude Oil to drop enough to help down the Canadian Dollar, plus a weak inflation print later.
I will take a bullish bias if and when there is a New York close above 1.3529.
Regarding the USD, there will be a release of Retail Sales data at 1:30pm London time. Concerning the CAD, there will be a release of CPI (inflation) data at the same time.